A visitor is seen exploring the Kakao Entertainment booth at the 2024 World Webtoon Festival held at S-Factory in Seongdong-gu, Seoul on the afternoon of the 26th of last month. / Yonhap News
Kakao’s global webtoon business has been experiencing setbacks, withdrawing from markets such as Indonesia and Taiwan following its exit from Europe (France).
According to the webtoon industry on the 21st, Kakao Entertainment sent an email to major domestic and international content production and distribution companies (CPs) stating that it decided to terminate its webtoon services in Taiwan and Indonesia, as part of a global business strategy reassessment focused on “selection and concentration.” The company plans to focus its efforts on North America and Thailand in the future. A Kakao Entertainment representative explained that the decision to end the services was made after a comprehensive review of the local market conditions, including slowed growth in the local webtoon market and widespread illegal distribution, particularly in Indonesia, where over 100 sites are involved in illegal distribution of Kakao webtoons, affecting profitability.
Kakao will end its Indonesia service within this year and cease operations in Taiwan next year. The Indonesia service will close just two years after its launch, and the Taiwan service will end four years after its inception.
This is not the first time a warning sign has appeared in Kakao’s global webtoon business. In May, Kakao Piccoma, which operates the webtoon business in Japan, decided to dissolve its European subsidiary established in France within the year, and ended its European webtoon services last month. Kakao Piccoma mentioned at the time that the decision to withdraw from the business was made after an extensive examination from various perspectives due to the slow growth in the market.