Kakao is close to launching "Talk Affiliate", a participation-based advertising service that links KakaoTalk short-form creators and Gift Giving transactions.

The industry said on Feb. 27 that Kakao completed a pilot test for general users for about two weeks after filing a trademark application on Jan. 7. Kakao has already written into Article 11 of its ad service operating policy, revised this month, that it will charge a commission based on sales generated through the Gift Giving affiliate service.

"Talk Affiliate" is structured so that when users buy on Gift Giving items introduced by a short-form creator in a video on KakaoTalk, the seller and creator share the revenue. Specific commission rates will be announced separately through the seller center.

Advertising and commerce stagnate together, and expanding inventory alone has limits.

The background to the service is stagnation in the joint growth of Kakao's core revenue sources. Kakao's display advertising posted five straight quarters of declines from 2024 through the first half of 2025. After Kakao physically expanded ad inventory through a KakaoTalk app revamp last year, it rebounded in the fourth quarter with 18 percent growth from a year earlier, but there is a structural limit to continuing to expand inventory within a limited platform. It is time to shift to a model that generates revenue linked to purchase performance rather than increasing exposure inventory.

Kakao Chief Financial Officer Jonghwan Shin (신종환) said in a conference call on Feb. 12, "We built a structure that brings external advertiser demand into Talk inventory through linkage with external DSPs (advertising buying platforms)," underscoring a strategy to move away from dependence on internal traffic.

The commerce division is the same. Kakao's integrated commerce transaction volume last year rose 6 percent from a year earlier to about 10.6 trillion won, but it has clearly slowed from the double-digit growth rates of the past. The affiliate model is advantageous for expanding transaction volume on an ongoing basis because it reduces reliance on seasonal events and is structured so creators and users voluntarily bring in traffic from external channels.

Similar to "YouTube Shopping", but purchases are completed within Kakao.

The service resembles YouTube Shopping. Creators tag products in videos and receive a purchase commission. But while purchases on YouTube Shopping take place on external platforms, Talk Affiliate completes the process within Kakao's ecosystem, from short-form viewing to payment. A key difference is that it can accumulate both traffic and payment data internally.

In South Korea, Coupang Partners and Naver Streamer Shop operate similar models. In a market where competition has already formed, Kakao is expected to use its roughly 50 million KakaoTalk user base and its existing commerce infrastructure, Gift Giving, as differentiation points.

Another point to watch is the link to its AI strategy. Kakao CEO Ji-na Chung (정신아) shared the results of a closed beta test (CBT) of the on-device AI service "Kanana in Talk" in a conference call on Feb. 12, saying the commerce domain accounted for the largest share among interaction scenarios with AI agents.

She said usage was highest for schedule reminders and briefings in the "first message" function in which AI initiates contact after grasping the context of a conversation. She also said a pattern was confirmed in which users naturally moved into commerce behavior during the agent execution process. As Kanana in Talk shifts to an official launch during the first quarter, it cannot be ruled out that Talk Affiliate could serve as the first test bed for AI-based commerce touchpoints.

Kakao has publicly set targets this year of consolidated revenue growth of at least 10 percent and an operating profit margin of 10 percent. With maintaining annual double-digit growth in TalkBiz advertising a key pillar, the question is whether Talk Affiliate can materially contribute to that goal. Success will depend on how quickly it builds a creator ecosystem after the official launch.

Given that the early success factors for Coupang Partners were a clear commission system and a low barrier to entry, it will be an important variable whether Kakao discloses its commission rates early.

An industry official said, "It is natural to move from expanding ad inventory to a performance-based model," adding, "When commission rates and the design for creator participation become concrete, the market reaction will become clearer."