Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Skepticism rises over Korea's heavy reliance on Kakao
Logos of Naver's Line mobile messenger app, left, and Kakao's KakaoTalk / Courtesy of each company
By Park Jae-hyuk
Naver, Tmap Mobility capitalize on disruption in rival's services
By Park Jae-hyuk
The longest-ever malfunction of Korea's most popular mobile messenger app, KakaoTalk, and its related services prompted users to rethink their heavy reliance on the tech firm.
After a fire on Saturday damaged Kakao's main data center at SK C&C's building in Seongnam, Gyeonggi Province, Korean users have begun looking for alternatives to Kakao's services, as the disruption has not only caused inconvenience to consumers, but also inflicted financial losses on various businesses.
Among the major victims of the fiasco were taxi drivers affiliated with Kakao, as they are only allowed to be called via Kakao Mobility's KakaoT. They are said to have suffered huge losses, because the disruption occurred during peak hours.
Chauffeurs and couriers also faced temporary setbacks in their work, due to the malfunction of Kakao Mobility's services. Those who borrowed Kakao Mobility's electric scooters and bicycles before the disruption were reportedly charged significant amounts of money, as they were unable to return the vehicles.
Some e-commerce platforms were unable to sell their products to customers using their KakaoTalk accounts to log onto online shopping malls.
“Due to the fire at Kakao's data center, it is difficult to subscribe, register new addresses, make payments via Kakao Pay and get customer services via KakaoTalk,” Kurly, the operator of fresh food delivery platform Market Kurly, told its customers. “We apologize for the inconvenience.”
Starbucks and various other restaurants had to cope with complaints from some customers who were unable to make payments with their “gifticons,” mobile vouchers that are sent via KakaoTalk.
Upbit users were barred from trading cryptocurrencies for several hours, as KakaoTalk accounts are needed for them to log onto the nation's largest cryptocurrency exchange.
Tmap Mobility and Naver apps, which are considered alternatives to Kakao Map and KakaoTalk, are among Korea's three most popular apps on Google Play, Sunday. Screenshot from Google Play
Amid the nationwide chaos, Naver stepped up promotion of its Line mobile messenger app on its website. Tmap Mobility also promoted its taxi-hailing and chauffeur services via social media. Data from both Google Play and Apple App Store confirmed that the alternative services have attracted consumers during the outage of Kakao services.
Some Kakao service users suggested that consumers should sue the company, although there is less likelihood of the tech firm compensating those who use only KakaoTalk, a free app. There is speculation that Kakao may ask SK C&C to compensate its users on behalf of itself.
On Sunday, Kakao Entertainment said it will extend the subscription expiration dates of all customers of its Melon music streaming service for three days and distribute 1,500 won ($1) to users whose subscriptions expired on Saturday. Kakao Mobility announced it will come up with compensation plans in the near future.