Standing beside OpenAI cofounder Sam Altman on stage in Seoul earlier this year, Chung made it clear: this alliance is not just about technology—it’s about transformation.
“With OpenAI, we now have the power to turn every AI-era service we imagined into reality,” declared Chung.
Kakao, valued at $20 billion, is now set to deploy AI agents—virtual assistants capable of learning, reasoning, and even acting on behalf of users—across its 49-million-strong user base. These agents will go far beyond conventional chatbots, enabling users to book cabs, pay bills, schedule meetings, and even shop—without ever leaving a conversation thread.
Why OpenAI? Why Now?
Kakao needed a trusted AI partner, and OpenAI, the creator of ChatGPT, brings not only world-class tech but also global credibility. For OpenAI, the alliance grants access to one of the world’s most digitally connected markets—South Korea ranks second globally in paid ChatGPT users outside the U.S.
Kevin Weil, OpenAI’s Chief Product Officer, noted:
“We’re excited to integrate our AI into Kakao’s ecosystem and transform the way millions connect, work, and live.”
A Turning Point for Kakao—and Korea
For Chung, who took over as CEO in March 2024 amid sluggish growth, the deal is a bold bet on AI as the growth engine Kakao needs. Kakao’s dominance in Korea spans everything from messaging and online banking to ride-hailing and entertainment. But it faces stiff competition from Naver’s AI initiatives and rising local startups.
To stay ahead, Kakao is investing 600 billion won into a new 92,000-square-meter AI data centre in Namyangju, expanding on its earlier facility in Ansan. Kakao’s strategy is hybrid: using OpenAI’s LLMs for complex interactions, while deploying its own small language models (SLMs) for simpler, secure, and cost-effective tasks.
AI for Everyday Living
Kakao’s upcoming AI-powered assistant, set to launch in November 2025, promises a seamless experience where users won’t need to navigate apps—they’ll simply ask, and the agent will act. Early tests through Kakao’s beta app Kanana have shown agents that can summarise group chats, schedule meetings, and even offer suggestions in real time.
This, Chung believes, is the future of interaction.
“Even if you don’t understand AI, your life will still become easier with it,” she says.
Restructuring for the AI Era
Chung is also reshaping Kakao internally. Under her leadership, the company has cut non-core units, reduced affiliates from 147 to 115, and initiated the spin-off of Daum to refocus on scalable, tech-first ventures. New verticals—like digital health, fintech, and entertainment—are receiving major AI investments.
Chung is particularly focused on building “stickiness” in user behaviour, enhancing advertising and commerce revenues, and boosting in-app transactions. Kakao already processes over 600,000 digital gift exchanges daily, and AI integration is expected to multiply that figure.
From VC Visionary to Tech Transformer
Before stepping into Kakao’s top role, Chung built her legacy at Kakao Ventures, leading early-stage investments in AI startups like Rebellions, Korea’s first AI chip unicorn. Her diverse career—spanning BCG, eBay, and Naver—has been driven by a rare combination of analytical depth and imaginative foresight.
“A crisis,” she says, “is often an opportunity for renewal.”
Her ability to imagine the future, invest in it early, and then execute with bold partnerships is exactly why Kakao’s AI transformation feels real—not just hype.
A Bet on the Future
Despite market challenges and regulatory hurdles (especially around data privacy and stablecoin regulations), Kakao’s shares have surged over 85% in recent months—buoyed by investor confidence in its AI-led strategy and support from South Korea’s new government, which has pledged over 100 trillion won in AI investment.
Whether this partnership with OpenAI marks a permanent turnaround or just a bold experiment, one thing is certain: Shina Chung has placed Kakao on the global AI map—with the courage to imagine, the wisdom to partner, and the leadership to deliver.
