Kakao, which trimmed its number of affiliates to 94 by the end of last year from a previous 147, plans this year to expand its artificial intelligence (AI) and blockchain ecosystems on the back of restored profitability in its core business.

The “amplification” declared by CEO Chung Shin-a in a New Year message is seen as a signal of a shift to offense, aiming to expand revenue volume and corporate value based on profit margins secured through last year’s slimming-down efforts. Kakao’s 2026 strategy can be summed up in three pillars: cash, tech and global expansion.

◆ Securing funds for AI and global bets… core business regains competitiveness

The financial firepower that underpins all new businesses is to be provided by KakaoTalk, the company’s core service. Since the second half of last year, KakaoTalk’s advertising (TalkBiz) revenue has returned to a clear recovery trend.

The market positively assesses Kakao’s establishment of a “two-track” strategy that boosts ad efficiency through a separate “news” space while guaranteeing the “friends list” users want, rather than pursuing aggressive traffic experiments. With a stable user experience (UX) assured, advertisers who had left have returned, creating a virtuous cycle that naturally leads to revenue growth, the analysis says.

Lee Ji-eun, an analyst at Daishin Securities, said ad revenue is rebounding faster than the company planned, along with the effects of an app revamp. She forecast TalkBiz revenue will jump 26 percent in 2026 from the previous year. FnGuide also projected Kakao’s operating profit will reach 885.1 billion won this year, laying the groundwork for a return to the “1 trillion won club.”

The industry interprets Kakao’s focus on restoring KakaoTalk’s core competitiveness as an effort to secure investment resources for AI and global businesses. A stable cash cow is essential to shoulder the huge costs of building data centres and expanding global platforms. Ultimately, abundant cash flow generated by TalkBiz is expected to be the key driver enabling an aggressive AI push without reliance on external funding.

◆ “Stitching together scattered services with AI”… ‘Kanana’ as the glue of the Kakao universe

The baseline strength secured in the core business is to be linked to a new growth engine called “Kanana.” Kakao affiliates that have been fragmented across taxis (mobility), payments (Pay) and gifting (commerce) will be tied together through “Kanana,” set to launch in the first quarter of this year.

If Naver is “informational AI” based on search data, Kakao aims for “relational AI” that connects services within the context of conversations. The idea is that while chatting in a group room, users would not need to switch apps as AI reads the context and handles everything at once, from restaurant reservations to splitting the bill.

Lee said Kakao is moving faster than rivals in the pace of introducing AI agents. She analysed that the lock-in effect, through AI agents that keep users within the company’s services, will be significant.

◆ “Aiming for zero FX fees”… building a global ‘financial expressway’ with a super wallet

Technology and capital built up in the domestic market will gain explosive power when combined with global markets, especially the “fandom economy.” The Kakao group presented a “global fandom OS” and a supporting “super wallet” as key growth pillars this year.

KakaoPay CEO Shin Won-keun outlined the plan at a symposium on Dec. 23, saying it would offer a borderless financial experience through a “super wallet” that holds fiat currencies, virtual assets and local currencies. The key is “wallet-to-wallet” technology that removes intermediaries. The idea is to process overseas remittances and business-to-business (B2B) settlements in real time and drastically reduce currency exchange costs.

A “allied forces” strategy, rather than going it alone, has also taken shape. Kakao plans to form a consortium with banks, entertainment companies and fintech firms to build a won stablecoin ecosystem. Through that, it plans to complete a “full-stack financial network” that lets K-pop fans worldwide buy tickets and merchandise without currency exchange barriers.

In the New Year message, Chair Chung emphasised, “Let us take on bold challenges where 1+1 goes beyond 2 by using AI as a creative multiplier.” If 2025 proved “survival” through painful restructuring, 2026 is expected to be the first year in which Kakao must prove “growth” with strengthened financial capacity and AI and blockchain technologies as its weapons.