(Reuters)Kakao is a platform, or big tech company.
About 47 million people use KakaoTalk, a messenger, more than 90 percent of the Korean population.
The platform has not been able to recover services that have been unstable for more than 20 hours due to a fire in the server center on the 15th.It is the longest service failure in 12 years.
Kakao platforms are already widely distributed in financial online banking, maps, taxi calls, as well as entertainment (dating, webtoon).
Bumsoo Kim, a major shareholder who is currently the chairman, has become a representative company whose stock asset value precedes the re-employment of Samsung Korea.
Due to Kakao’s extensive platform in Korea, it was managed by a data center (skt carrier) server as a company that had an absolute advantage in notification services and sales marketing by government agencies, which means that server management was not dualized or distributed.
All distribution and services using Kakao in mobile app services are suffering a series of damage. Vice President of Foreign Cooperation (Hyun Seo-yang) says that it takes a considerable amount of time to recover the server due to the fire. And the Korean people were devastated that network disruption and server down were devastating.
Naver, a similar big-tech platform company, provided quick recovery and services even though the fire healed in the same data center.
Last year, Kakao sales were about $1 billion and operating profit was less than about $100 million.It is a mythical company in the Korean IT industry, and it also had a dispute with Global Google over app services.
In order to strengthen the size and concentration of the company, the personnel management of the Ministry of Foreign Cooperation is a major media company politics.
(Reuters)It is hired as an economic reporter and hired executives as political aides as foreign cooperation personnel at Kakao Bank.
Securities firms estimated that Kakao would lose around one percent of its daily sales due to the Pangyo data center fire, and expected stock prices to be affected.
In a report on the 17th, “(Kakao Talk) was suspended for about 10 hours, but sales of Bizboard advertisements were suspended until the 16th, and mobility, gift giving, and page sales did not occur for one to two days,” he said. “Up to 1-2% of sales in the fourth quarter may decrease.
(Reuters)” However, he added that there is still a possibility of compensation for damage as the fire management was responsible for SK C&C. “What is important is whether this situation leads to permanent user withdrawal,” he said.
“As the irreplaceable advantages of Kakao services still exist, structural withdrawal of users is expected to be limited when the service is normalized.
“However, Kakao Group shares are expected to fall sharply in the short term as the New York Nasdaq index plunged more than 3% on the 14th (local time) and the massive negative factor of “inaction” broke out.
“Although it is too early to predict the exact size, most of Kakao’s services have stopped, so it is estimated that the total daily sales of Kakao’s domestic business, more than $13.5 million, could decrease,” he said.
“However, this incident has been an opportunity to check Kakao’s influence in Korea once again, and there are not many services to replace Kakao in a short period of time, so it is expected to rebound once the restoration is completed well,” he added.
It also predicted that the amount of damage Kakao will suffer from this incident will be about 22 billion won based on its expected sales in the fourth quarter, and said, “The cost increase is inevitable as compensation for damages for paid services is being discussed.
“Securities firms have also significantly lowered Kakao’s target stock price in that the service failure has lowered its brand value.
“The entire nation suffered inconvenience due to this incident, and the brand premium of Kakao’s various platform services has been tarnished,” he said.
“There has been a setback in securing growth engines such as Talk Biz through Kakao Talk reorganization.
” It lowered Kakao’s target stock price from about $90 to $50 and explained, “It is a slowdown in Talk Biz sales growth due to the economic slowdown, a drop in the value of shares of major subsidiaries, and a discount rate.
“They said, “We lowered the value calculation of portals and Kakao Talk to reflect the fall in valuation of global comparison groups and reflected the decrease in equity value due to the fall in subsidiaries’ stock prices,” and predicted, “but if the growth of the advertising division is confirmed in 2023, the stock price will rebound.”
TED PARK
ASIAJOURNAL
