Kakao CEO Chung Shin-a (정신아), whose term expires in March, is seen as getting a green light for a second term. That is because she is being highly rated for driving the company’s best-ever results through sweeping reforms despite an unusual crisis marked by the founder’s absence and legal risks.

Rationalise the business and strengthen fundamentals ... crisis-management skills proven

Chung’s reappointment prospects are widely seen as strong, backed by figures that show crisis-management capability and performance.

According to financial data provider FnGuide on Jan. 29, Kakao is forecast to post consolidated revenue of 8.0873 trillion won and operating profit of 681.5 billion won for last year. Revenue is expected to rise 2.7 percent from a year earlier, while operating profit is seen surging 48.1 percent, sharply improving profitability. In the third quarter, it surpassed 200 billion won in quarterly operating profit for the first time, showing a clear rebound.

The results are seen as reflecting the effectiveness of a “selection and concentration” strategy Chung pushed from the start of her tenure. Kakao carried out sweeping cuts, reducing the number of affiliates from 147 at one point to 94 by the end of last year, a cut of about 30 percent.

The move is seen as going beyond cost-cutting, reshaping Kakao’s business structure — criticised for sprawling expansion — around its core “platform” and “content” operations to maximise management efficiency. By boldly shedding non-core businesses and focusing on key capabilities, the company posted an improved operating margin.

Pivot to “AI pragmatism” ... aims for profitability by combining it with KakaoTalk

Chung took a pragmatic line in AI, focusing on “practical service implementation” rather than an aggressive race in “foundational technology.” Through a partnership with OpenAI last year, Kakao embedded “ChatGPT for Kakao” in KakaoTalk, drawing 2 million users within 10 days of launch and reaffirming its platform power. It is also set to launch its in-house AI, “Kanana,” as a service within KakaoTalk during the first quarter.

The strategy aims to avoid costly infrastructure competition and instead bring AI to KakaoTalk, described as the nation’s messenger, to compete with consumer services users can feel. It seeks to increase time spent through AI and link that to advertising and commerce revenue.

Next battleground is “stablecoin” ... boosting the share price is a task

Chung’s hidden card after a second term is “finance.” Kakao is stepping up preparations by operating a “won stablecoin TF” together with Kakao Pay and Kakao Bank.

While Kakao has pursued blockchain businesses through Klaytn and other efforts, it lacked synergy among affiliates. This project is interpreted as a mid-to-long-term move to build a practical “Web3 economic ecosystem” by combining KakaoTalk’s accessibility with the infrastructure of its finance affiliates. It is expected to become a key axis of a strategy to expand beyond the limits of the domestic market to a global payments network.

Challenges remain. User backlash during last year’s KakaoTalk revamp and the resulting restoration of trust are still unresolved tasks. Above all, the stock price, stuck in a 50,000 won to 60,000 won range even as the KOSPI market is strong, is the most urgent difficulty Chung must solve.

An industry official said calls are growing for continuity in the strategic framework Chung has built over the past two years, as internal and external uncertainties remain, including legal risks surrounding founder Kim Beom-su. The official said this reappointment would be a chance to determine whether “Chung Shin-a Season 2,” powered by AI and finance, can lead Kakao’s renewed leap forward.