KakaoTalk's Gift Giving, long used to mark friends' birthdays and anniversaries, is broadening into a shopping space for users themselves. Self-purchases still account for about 20 percent of total Gift Giving transaction value, but growth in self-purchase volume is far outpacing growth in TalkBiz commerce's combined transaction value, which includes Gift Giving and Talk Deal.

Kakao's push to expand self-purchases reflects a judgement that it needs to raise purchase frequency and broaden the scope of its commerce business, which has relied on gift demand. It can also link increased product browsing to transaction and advertising revenue. Still, the closer Gift Giving moves to a general shopping platform, the greater the burden of competing on price, products and delivery against services built by Naver and Coupang.

Self-purchases account for 20 percent... a new growth driver

Kakao said self-purchase transaction value within Gift Giving rose 39 percent in the second quarter from a year earlier and accounted for about 20 percent of total Gift Giving transaction value. Over the same period, TalkBiz commerce's combined transaction value, including Gift Giving and Talk Deal, rose 9 percent to 270 trillion won, while revenue rose 10 percent to 243.2 billion won.

The strong growth in self-purchases has continued since last year. Self-purchase transaction value rose 40 percent in the third quarter of 2025 and 47 percent in the fourth quarter, then climbed 53 percent in the first quarter of this year. In the third quarter of last year, overall Gift Giving transaction value grew only 1 percent, while self-purchases rose 40 percent, outpacing the overall growth rate.

Kakao has expanded related services since running a self-purchase-only promotion, "For Me Week," in April 2024. In May last year, it created a "Gift to Me" tab, offering limited-quantity products, personalised rankings and dedicated discount coupons. In January this year, it added a "bought with my own money" category to product rankings, and in March it also strengthened self-purchase benefits at the Kakao Shopping Festa.

Gifts and self-purchases also differed in product choices. Kakao's analysis of Kakao Shopping Festa usage in March showed the top self-purchase item was the Dyson Airwrap styler. Over the same period, the most-sent item to others was a 50,000-won Baedal Minjok voucher. The analysis showed users sent vouchers with a broad range of uses to others, while choosing products with clearer preferences for themselves even at higher price points.

Beyond relationship-based commerce, expanding repeat purchases

Gift Giving has grown into Kakao's core commerce service thanks to KakaoTalk's social network. Users can send products to KakaoTalk friends without knowing their address, and birthday notifications naturally create demand. That is how it built an area distinct from established e-commerce, which grew around product search and price comparison.

Gifts, by contrast, require occasions such as birthdays, anniversaries and major holidays for transactions to occur. Self-purchases can draw users even when they do not need to send a gift by highlighting discounts, new products and exclusive bundles. Demand for existing merchant products can also broaden from gifts to everyday consumption.

Expanding self-purchases could also link to advertising revenue. Kakao launched "commerce catalogue ads" in June that link product information from Gift Giving and Talk Store sellers to its advertising system. The product allows sellers to expose items on major placements such as KakaoTalk, Gift Giving and Talk Deal without producing separate advertising materials.

As more users browse Gift Giving for themselves, there can be more opportunities to show ads to users with purchase intent. The structure increases visits and product browsing through self-purchases and connects that to sellers' ad spending and actual transactions.

Expanding shopping touchpoints with membership and AI

Kakao's planned KakaoTalk-based integrated membership could also align with its strategy to expand self-purchases. Kakao is reviewing a membership that links benefits across key services, including shopping, mobility, content, and finance and payments, centred on KakaoTalk.

If Gift Giving receives discount or rewards benefits, users could have an incentive to buy products repeatedly within KakaoTalk. Still, the participating affiliates, detailed benefits and launch method have not yet been decided.

AI can also be a tool to connect gifts and self-purchases. Kakao introduced AI-based product summaries and recommendation functions on Gift Giving product detail pages in January. The AI functions currently applied focus on helping users choose gifts by presenting product attributes, recommendation targets and gifting purposes. If self-purchases increase, recommendation scope could broaden to product browsing for users themselves.

Kakao's push into agentic commerce also aims to connect product search, recommendations, purchasing and payments based on user requests. Self-purchases are a new growth driver that can link transactions and advertising with membership and AI recommendations.

Still, when buying products for themselves, users are likely to compare prices, discounts, delivery speed and reviews on services such as Naver Shopping and Coupang. As self-purchases expand, Gift Giving will have to compete on conditions similar to general e-commerce rather than relying on social ties and convenience of delivery.

An industry official said, "Gift Giving's strength is that purchases occur naturally through the KakaoTalk social network, but in the self-purchase market, price and delivery competitiveness become more important." The official added, "The key will be whether Kakao can create repeat purchase habits through membership and AI recommendations."