Daum Kakao to launch investment firm for start-ups

Daum Kakao said Tuesday that it would invest 100 billion won ($90 million) to set up an investment company, tentatively called K Venture Group, next month.

The operator of the widely used mobile messenger KakaoTalk will aim to create sustainable venture ecosystems like those in the U.S. tech hub of Silicon Valley by actively investing in and acquiring promising start-ups with innovative technology and ideas.

“K Venture seeks to discover new growth for Daum Kakao and boost its global competitiveness in the mobile industry by aggressively investing in and acquiring venture start-ups both at home and abroad,” Daum Kakao said in a press statement.

The planned establishment of the investment firm comes after Kakao founder and chairman Kim Beom-su pledged to help 100 start-ups become global enterprises that can change the world.

It added that it would invest in early-stage start-ups that have not yet developed or launched products or services, but that seek to share and give value to users or consumers through innovation.

Daum Kakao said its ideal start-ups would include those that seek to develop and create next-generation mobile platform services.

The company has appointed John Park, the incumbent chief global strategy officer, as K Venture Group’s first chief executive.

“Rather than focusing on short-term returns, we plan on making long-term commitments to ventures with the potential to excel both domestically and globally,” Park said in a statement.

“The goal is to foster a flourishing ecosystem akin to Silicon Valley by actively investing in ventures exhibiting strong growth potential.”

Before joining Daum Kakao in May, Park worked as an investment banker at Goldman Sachs and marketing manager at AT&T Network Systems. Park graduated from Harvard University with a master’s in business administration.

In October, when Daum Communications, the country’s secon-largest search engine operator, and Kakao announced their merger, the company stressed the importance of creating ecosystems through alliances with partners, especially start-ups and mid-size enterprises.

By Park Hyong-ki (hkp@heraldcorp.com)