Kakao to offer fee-based Kakaopage in next year`s 1st quarter

Kakao, the creator of Korea`s top smartphone messaging service KakaoTalk, will launch in next year`s first quarter the premium KakaoPage, which will feature cartoons, music, movies and news.

The formula of free online content is apparently about to change. Portal sites in Korea have bought media news and Web cartoons at very cheap prices, servicing them for free in return for advertising profits. Telecom companies have also created a music and video contents marketplace in taking advantage of their explosive use via smartphones.

In this situation, content creators have suffered from high-handedness by portal site operators, and fought a price war rather than upgrading quality. Kakao thus decided to start a minimum price system that bans the sale of content below certain prices.

"Content creators haven`t been treated with dignity, and Korea`s content industry is now mired in a crisis. We decided to start KakaoPage for this reason," a Kakao source said.

Content creators are showing keen interest in this new service, with famous cartoonist Heo Yeong-man planning to post his new cartoon "Donguibogam" there. Kakao will hold a media briefing on its new service from the middle of January and encourage membership sales.

sanhkim@donga.com