Kakao is currently navigating turbulent waters following the recent overhaul of its flagship messaging app, KakaoTalk. This update, the first significant change in 15 years, was intended to enhance user experience by introducing what the company described as “more convenient chat experiences.” However, the response from the user base has been overwhelmingly negative, prompting calls for a rollback of the changes.
User Backlash
Many users have expressed concerns that the app has strayed from its original identity, with the new design drawing comparisons to Instagram. A particularly contentious feature is the automatic display of friends’ updated photos on the app’s main page, which has raised privacy concerns among users. According to a study conducted by user experience consultancy pxd, approximately 42 percent of KakaoTalk users found the update to be “unsatisfactory.” This sentiment is reflected in the reviews posted on both the Google Play Store and Apple App Store, where user frustration is palpable.
As the days passed since the update, user discontent has only intensified. Critics have directed their ire not only at the app’s new features but also at the management decisions that led to this revamp. Despite the backlash, Kakao’s leadership remains steadfast in their belief that the updated version will ultimately benefit users. CEO Chung Shin-a reassured reporters that while even minor updates can lead to user discomfort, the long-term advantages of the new KakaoTalk will outweigh the initial inconveniences.
Management’s Confidence
Hong Min-taek, Kakao’s chief product officer who oversaw the update, echoed this sentiment during a recent developer conference. He expressed confidence that the changes would streamline daily communication for users, making it easier and more convenient. However, the situation took a turn for the worse when a Kakao official disclosed on the workplace community app Blind that the update was largely driven by top management, despite significant opposition from the company’s engineers, app developers, and designers.
This revelation has only fueled user outrage, leading to a notable decline in investor confidence. Data from the Korea Exchange indicates that Kakao’s shares plummeted by 6.17 percent on the trading day following the update, dropping from around 66,400 won () to 59,300 won per share. The company’s market capitalization, which stood at approximately 29.36 trillion won on September 22, has since decreased by about 3.4 trillion won, reflecting the growing concern among investors regarding the ongoing public discontent.
As Kakao continues to grapple with the fallout from this controversial update, the path forward remains uncertain. The firm’s leadership is committed to the new direction, but the voices of its users and investors will undoubtedly play a crucial role in shaping the future of KakaoTalk.
