In Brief:
- Kakao, a South Korean internet titan, is expanding with two blockchain offices in Singapore as part of its worldwide blockchain development.
- The company has already established a $300 million Klaytn Growth Fund, to invest in entrepreneurs.
Kakao Group, which operates the KakaoTalk instant messaging service, has set up two new blockchain units in Singapore. It has expanded in order to grow its blockchain platform internationally and also to compete with Naver.
The Klaytn Foundation and Krust, according to the Korea Herald on August 16, 2021, are the two blockchain-based institutions. The former is a non-profit, while the latter is the worldwide accelerator unit of Kakao.
Kakao has established the non-profit Klaytn Foundation and global accelerator unit Krust in the city-state, as per local media reports. The South Korean internet giant will pursue the globalisation of Klaytn, from Singapore, with the two at the lead.
Previously, the project was led by Ground X. Now, it is a Seoul-based Kakao affiliate that built the open blockchain platform and the digital currency KLAY in 2018.
“We will extend the Klaytn World – more proactively and systematically,” the foundation said in announcing its official start on August 10, 2021. “To accelerate the growth, we will actively invest both human and financial resources in blockchain businesses,” it further added.
Future Plans of Kakao for Global Expansion
Kakao started as a messaging app in 2010 and has now expanded to include banking, entertainment, commerce, content, and media. Blockchain is one of two goals in the company’s global expansion strategy, termed “Kakao 3.0,” the other being content.
One of Kakao’s founding members, Song Ji-ho, will lead Krust as CEO. Others are anticipated to join the new blockchain initiative, including former Chief Strategy Officer and former Chief Technology Officer.
Kakao has also enlisted the help of 32 international and domestic firms to form the Klaytn Governance Council. In their various business areas, all of the enterprises are exploring blockchain projects.
The blockchain battle is poised to heat up even more as Kakao tries to catch up with portal pioneer Naver. It has already developed its Line Blockchain ecosystem in Japan and Southeast Asia.
The Bank of Korea (BOK), South Korea’s central bank, held a competitive bidding process in which both companies participated. Kakao’s Ground X won the proposal and was chosen by the Bank of Korea to be its technology partner.
