Kakao Corporation & Factors Of Production
PRINCIPLES OF MICROECONOMICS
Economy background of Republic of Korea
Republic of Korea is country which is after emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea joined the trillion-dollar club of world economies. The GDP figure in the second quarter of 2018 was $289,599 million, South Korea is number 11 in the ranking of quarterly GDP of the 50 countries that we publish. Moreover, Korea's Population reached 51.45 million people in Dec 2017.
Monthly Earnings of Korea stood at 3237.85USD in Apr 2018. The country's Labor Force Participation Rate dropped to 63.80% in Jun 2018. Furthermore, Youth Unemployment Rate in South Korea increased to 9.90 percent in August from 9.20 percent in July of 2018. Youth Unemployment Rate in South Korea averaged 7.13 percent from 1982 until 2018. In additional, South Korea is the 5th largest export economy in the world. In 2016, South Korea exported $515B and imported $398B, resulting in a positive trade balance of $117B. In 2016 the GDP of South Korea was $1.41T and its GDP per capita was $36.5k.
Kakao corporation – Factors of production
Land comprises all naturally occurring resources as well as geographic land. Examples include particular geographical locations, mineral deposits, forests, fish stocks, atmospheric quality, geostationary orbits, and portions of the electromagnetic spectrum. Supply of these resources is fixed. The company Kakao is an important factor in the fourth industry, the information and service industry that provides convenience to consumers. Furthermore, it is the number one social networking service in Korea through social networks. The company's founder initially created social networking services, and continued to develop its own game industry, mergers and acquisitions of companies in various fields, and grows the company's size, providing consumers with various services.
Kakao is also banking on the safe money exchange of the people, creating Kakao Bank for the people of South Korea. Kakao Bank has become a popular bank that uses middle-aged people as well as young Koreans now. References to appendix C.LABOUR - To start with the management system of Kakao, there are shareholders, board of directors, auditors, stakeholders, and market monitoring. Details include strategy team, audit team, media and content team, and management policy team.
Strategy team is a functions as a coordinating body, developing and implementing strategies that satisfy the objectives of individual departments as well as promoting overall corporate goals.
Audit team is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively. Internal Audit team duty is to provide an unbiased and objective view.
Media and Content team is oversees the whole process and sets the strategy that others will contribute to. For many small businesses, the owner serves as the ultimate overseer.
Management policy team is the establishment of a method or means to pursue and realize a particular purpose for direction presentation. There are many differences among scholars as to how to limit the scope of these methods. However, unlike various management controls that control individual management practices, the management policy as a basic policy should form a rational management structure that is generally consistent with its corporate objectives and provide a basic direction for it.
Capital – capital is wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing. Kakao has transformed itself into a 'mobile life platform' company with various functions such as search, remittance, payment, shopping, video and media. Kakao operates service businesses in mobile messengers, portals, games, music, paid contents, mobility, commerce, and payments (Kakao Pay).Besides sending messages, photos and videos, Kakao Talk is a variety of platforms such as 1:1 conversation and group chatting, making friends, # search, store, gift, and others.
The portal business provides Internet-based services such as search, e-mail, news, dictionary, shopping, finance, automobile, storytelling, and community through the operation of the Internet portal(www.daum.net)' and sells online advertising products.The mobile game business is being managed by Kakao Games. The music business operates Melon, a music platform, through KakaoM, a subsidiary.Major service of paid contents business is Kakao Page. Kakao Page is a comprehensive contents distribution platform that contains various contents such as comics, novels, movies, dramas, and entertainment.Mobility business is provided through its subsidiary Kakao Mobility. Kakao Mobil operates 'Kakao T', a mobility platform, and provides taxi, driver, parking and navigation services. The commerce business is conducted through shopping-related services such as "Give KakaoTalk" and "Kakao Makers" and "Flagship Store," a permanent store run by KakaoIX.
Kakao is a new business that has entered the Japanese market and the Chinese and Southeast Asian markets through IP (knowledge property rights) projects such as Webtoons, web novels and game publishing. In addition, it focused on developing AI platforms and services based on Kakao Brain, which was established to promote artificial intelligence business, and established blockchain technology and service subsidiary called 'ground-GX' in Japan. Kakao's AI platform, which is currently being serviced, is an AI speaker called 'Kakaoi' (a conversational smart home system).
The mother of Kakao was founded in February 1995. It's a communication. Lee Jae-woong, a graduate of the Department of Computer Science at Yonsei University, is known as the first generation of Internet ventures. Starting with 50 million won in capital and three full-time employees, he launched the first free webmail service in Korea in 1997. As a result, the online communication method of the public, which was centered on PC communication, was rapidly transferred to the Internet and became an Internet portal company when it launched 'Next(daum.net)' search service' in 2000. In October 2014, Daum Communications merged with KakaoAfter launching Mucao, the company changed its name to Kakao in October 2015.Meanwhile, Kakao's predecessor is Iwilab, which was established in the U.S. in May 2008, and its founder is Kim Bum-soo (currently, chairman of Kakao). iWip, a holding company, developed and released a mobile messenger called Kakao Talk in March 2010 and changed its name to Kakao in September of the same year. As of the end of March 2018, Kakao has a total of 80 affiliates.
CONCLUSION
In my opinion, South Korea is a good environment for business. Moreover, the Republic of Korea, as an IT powerhouse, promises to be an economic center for high-tech fourth-generation industries. For your information, the Korean Wave in Korea has become a worldwide success, raising foreigners' interest in Korean products. In addition, Lee Jae-woong, a businessman with Kakao Talk, has made a big difference in the Korean market through bold attempts. Kakao is the creator of Kakao Talk's social networking service, and continues to grow the company by adding a number of novel features for Kakao Talk consumers.
My thinking about Kakao Talk has made it easy for the elderly and children to use many functions and convenient services. And Kakao has bought Melon, a famous music-playing application company in Korea, to participate in the music industry and develop it. Also, cute emoticons are made and sold for young people and those who like cute characters. It consists of and can produce chocolate for older adults such as milk chocolate and dark chocolate. Plus, they can also attract children to buy chocolate by making cute or cartoon-like shapes.Kakao's 2017 earnings are 1972.32 Billion and are on the rise. In conclusion, I think that Kakao is already the number one social media company in Korea and is now becoming famous in Japan and Southeast Asia. With this spirit of enterprise, we must learn from these companies what we should keep in mind when doing business in the future.
REFERENCES:
- South Korea GDP per capita PPP.2018 [Online] Available at: https://tradingeconomics.com/south-korea/gdp-per-capita-ppp
- South Korea Youth Unemployment Rate. 2018 [Online] Available at: https://tradingeconomics.com/south-korea/youth-unemployment-rate
- K-bank and Kakao Bank Signal the Era of “Banking-Everywhere” 11 April 2018 [Online] Available at: https://platum.kr/archives/79175
- What Is Kakao and Why Should You Care? 7 June 2017 [Online]Available at: https://medium.com/@madebyalive/what-is-kakao-and-why-should-you-care-fcb430bc61d05
- The reason behind making the Korean legitimate ICO back? 24 March 2018 [Online] Available at: https://pinkblockchain.com/ly-dang-sau-khien-han-quoc-hop-phap-hoa-ico-tro-lai/
- Mobile Master: KakaoTalk Creator Becomes One Of South Korea's Richest Billionaires 24 September 2014 Available at: https://www.forbes.com/sites/ryanmac/2014/09/24/mobile-master-kakaotalk-creator-becomes-one-of-south-koreas-richest-billionaires/#670a6fa84fdf
