Kakao is set to establish a holding company focused completely on building and enabling Blockchain services, which Kakao envisions as a new growth driver for the company.
In addition to ‘Ground X’, the entity formed with intent to develop blockchain platform in Japan, Kakao has also established ‘Ground 1’, the Korean branch as well as ‘Kakao G’, the holding company of a blockchain subsidiary.
On March 24, the company established a blockbuster holding company, or Kakao G, with a capital worth about ~$20M USD in Japan.
The Kakao G is a wholly owned subsidiary of Kakao and is distinctively listed in its quarterly report. Park Ji-hwan, the CEO of Kakao Investment, heads the group. Ground X will serve as the core blockchain group of Kakao and develop various services related to the blockchain platform while Kakao G is expected to play a key role in shaping its global blockchain strategies.
“Kakao G is an investment specialist and holding company established to promote the global blockchain business.” “Ground X serves as a blockchain business headquarters. Ground 1 should be understood as the Korean branch office.” said by a Kakao representative.
The company is planning to develop blockchain businesses in major Asian countries such as Korea, starting with Japan. At the press conference held on March 27, SuYong Cho, the co-president of Kakao, has shown a willingness to execute aggressively on blockchain business development and use the platform as a key growth engine.
At the time, Mr. Cho explained, “Kakao plans to focus on creating a meaningful blockchain platform.” We will showcase blockchain platforms that are readily available to Asian partners and developers who want to create a token economy in Asia as well as in Korea.”
The company’s blockchain strategy will comprise of developing a true platform that will not only allow the issuance of cryptocurrency, but also sit under blockchain services of other companies.