Kakao Corp stock (KR7035720002): Police probe into data sharing with Alipay

South Korean police have launched an investigation into Kakao Pay over allegations of transmitting personal data of 40 million customers to China's Alipay without consent from 2018 to 2024.

South Korean authorities have initiated a police investigation into Kakao Corp's payment unit, Kakao Pay, for allegedly sharing personal information of approximately 40 million customers with China's Alipay without user consent. The probe centers on data transmissions totaling 54.2 billion records between 2018 and May 2024, primarily during Apple iPhone users registering Kakao Pay as a payment method. Information such as encrypted mobile phone numbers, email addresses, and charging balances was reportedly relayed via Alipay to Apple, Maeil Business Newspaper as of May 2026.

The Kakao Corp stock (KR7035720002) closed at ?42,950 on May 13, 2026, down 1.38% from the prior day on the Korea Exchange, marking three consecutive sessions of declines, StockInvest.us as of May 14, 2026. A police official noted they are reviewing data from the Financial Supervisory Service to determine next steps.

As of: 14.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Kakao Corp
• Sector/industry: Internet services and mobile messaging
• Headquarters/country: South Korea
• Core markets: South Korea, Southeast Asia
• Key revenue drivers: Advertising, payments, content platforms
• Home exchange/listing venue: Korea Exchange (035720)
• Trading currency: KRW

Kakao Corp: core business model

Kakao Corp operates as a leading internet platform in South Korea, best known for its KakaoTalk messaging app with over 50 million monthly active users domestically. The company has expanded into fintech via Kakao Pay, mobility services, and content streaming. Revenue streams include advertising on its platforms, transaction fees from payments, and commissions from entertainment services. Kakao Corp went public on the Korea Exchange in 2017 and holds significance for US investors through its exposure to Asia's digital economy growth.

The ecosystem integrates daily services like messaging, payments, ride-hailing via Kakao Mobility, and AI tools, creating network effects that drive user retention. Kakao Corp's strategy emphasizes super-app development, similar to regional peers, positioning it as a key player in South Korea's tech landscape.

Main revenue and product drivers for Kakao Corp

Advertising accounts for the largest share of Kakao Corp's revenue, leveraging KakaoTalk's vast user base for targeted ads. Kakao Pay contributes through payment processing fees, with millions of users handling remittances and e-commerce transactions. Content platforms like Melon music streaming and webtoons add subscription and ad income. In Q1 2026 reports, platforms revenue grew amid digital ad recovery, though exact figures require latest filings.

Expansion into AI, such as voice-enabled citizen services announced May 14, 2026, aims to boost engagement, Seoul Economic Daily as of May 14, 2026. Partnerships, like Uijeongbu City's PoC project with Kakao Mobility, highlight diversification.

Industry trends and competitive position

South Korea's internet sector benefits from high smartphone penetration and mobile-first consumers, where Kakao Corp competes with Naver Corp and global giants like Meta. Trends include AI integration and fintech regulation tightening, directly impacting the recent Kakao Pay probe. Kakao Corp's market share in messaging exceeds 90% domestically, providing a moat, but data privacy scrutiny poses risks amid global standards like GDPR.

Why Kakao Corp matters for US investors

Kakao Corp offers US investors indirect exposure to South Korea's $1.7 trillion economy, the world's 10th largest, with strong tech exports to the US. Its ADR considerations and partnerships with global firms like Apple underscore cross-border relevance. Volatility from regulatory news, such as the Alipay investigation, mirrors risks in US-listed Chinese tech stocks.

Conclusion

The ongoing police investigation into Kakao Pay's data practices introduces uncertainty for Kakao Corp shareholders, compounded by recent stock price weakness. While the company's core platforms remain robust, regulatory developments warrant monitoring. US investors tracking Asian tech will note parallels to data privacy challenges elsewhere in the sector.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.