Kakao has folded its games division into its subsidiary Kakao Games to enhance its competitiveness on the market.
The move will allow Kakao to access the expertise of its Games subsidiary to boost its own gaming division. It will also speed up decision making, leading to faster execution of ideas and better business all round.
Kakao now plans to build a strong line-up of PC and mobile games, as well as securing more IP to work with. It will also work to build up more partnerships with other developers.
Kakao Games CEO Nam Kung-hoon said that the move was a strategic decision to strengthen its games business. He also noted that it would allow Kakao to focus on maintaining and improving its chat app platform.
The company most recently snagged the rights to NetEase's megahit Onmyoji for its release in South Korea. It hoped to use its 40 million KakaoTalk users to boost the game's profile.