Latest news with #KakaoMobility
Trade Arabia
3 days ago
- Business
- Trade Arabia
Korean group to develop hitech mobility solutions for Diriyah project
Diriyah Company, a dynamic mixed-use developer transforming Saudi Arabia's historic birthplace into a vibrant new capital of culture and entertainment, has signed an agreement with Korea's Kakao Mobility, thus setting the stage for development and deployment of advanced mobility technologies within the first phase of its flagship sub-project under the broader Diriyah master plan. A unit of Saudi sovereign wealth fund PIF, Diriyah is helping shape the future of Saudi Arabia's most iconic destination, thus honouring its heritage while embracing innovation. Diriyah Company said this strategic partnership aims to leverage innovative smart parking technologies and develop digital platforms that promote seamless, efficient mobility for its residents and visitors. Under this agreement, both parties will collaborate on an in-depth assessment to support the development of smart parking infrastructure and digital platforms at selected sites within the first phase of the Diriyah project. This includes integrating digital parking systems, enabling seamless data connectivity, optimizing user experiences, and designing efficient operational workflows, it stated. Group CEO Jerry Inzerillo said the agreement marks a significant advancement in smart mobility, affirming the company's commitment to delivering world-class projects that will serve millions of visitors, enhance quality of life in Diriyah, and support the broader goals of Saudi Vision 2030.
Arab News
3 days ago
- Business
- Arab News
Saudi Arabia's Diriyah Co., Kakao Mobility sign deal to boost smart mobility
RIYADH: Diriyah Co., backed by Saudi Arabia's Public Investment Fund, has signed a memorandum of understanding with South Korea-based Kakao Mobility to enhance smart mobility infrastructure across the historic city of Diriyah. Announced in a post on X, the agreement is designed to develop integrated transportation solutions to accommodate the 50 million annual visitors projected during the first phase of the Diriyah project. The partnership will see Kakao Mobility contribute to the implementation of digital transport systems, seamless transit services, and smart parking infrastructure. The initiative aligns with Saudi Arabia's broader push to diversify its economy and reduce its dependence on oil, as outlined in Vision 2030. 'Mobility to shape the future of urban mobility. This collaboration brings smart, sustainable solutions to life, enhancing the digital movement experience for over 50 million annual visits by 2030,' Diriyah Co. stated in its post on X. The agreement marks the beginning of a phased rollout, starting with a smart parking pilot. The project also includes plans for a fully integrated prototype for smart parking and the deployment of advanced digital systems to streamline urban movement within Diriyah. In addition to enhancing visitor mobility, the collaboration supports Saudi Arabia's National Tourism Strategy, which aims to attract 150 million visitors annually by 2030. The company emphasized that the digital platform under development will connect key destinations within Diriyah, contributing to sustainable urban mobility and reinforcing the Kingdom's commitment to innovation and smart city solutions. Once completed, the Diriyah development is expected to contribute SR18.6 billion ($4.96 billion) to the Kingdom's gross domestic product and create approximately 178,000 jobs. In April, Diriyah Co. awarded a contract worth SR5.1 billion for the construction of the Royal Diriyah Opera House — a major cultural project. The contract was granted to El-Seif Engineering Contracting, Midmac Contracting Co. W.L.L., and China State Construction Engineering Corp.
Asharq Al-Awsat
3 days ago
- Business
- Asharq Al-Awsat
Diriyah Company Partners with Kakao Mobility to Develop Cutting-Edge Mobility Solutions
Saudi Arabia's Diriyah Company has signed a Memorandum of Understanding (MoU) with South Korea's Kakao Mobility. The MoU sets the stage for developing and deploying advanced mobility technologies within the first phase of Diriyah, a flagship sub-project under the broader Diriyah master plan. A statement from Diriyah Company said the partnership aims to leverage innovative smart parking technologies and develop digital platforms that promote seamless, efficient mobility for Diriyah's residents and visitors. By integrating global best practices and innovations in smart mobility, the initiative supports Diriyah's transformation into a premier global cultural and tourism destination, with a target of attracting more than 50 million visits annually by 2030. Under the agreement, both parties will collaborate on an in-depth assessment to support the development of smart parking infrastructure and digital platforms at selected sites within the first phase of the Diriyah project. This includes integrating digital parking systems, enabling seamless data connectivity, optimizing user experiences, and designing efficient operational workflows. Group CEO of Diriyah Company Jerry Inzerillo stated that the agreement marks a significant advancement in smart mobility, underlining the company's commitment to delivering world-class projects that will serve millions of visitors, boost quality of life in Diriyah, and support the broader goals of Saudi Vision 2030.
Korea Herald
22-04-2025
- Business
- Korea Herald
Kakao at crossroads: AI pivot fuels calls to shed noncore units
Entertainment and mobility units under scrutiny, while financial arms face limited impact South Korean IT giant Kakao is once again at the center of deal speculation, as rumors of subsidiary sales continue to swirl despite the company's repeated denials. Just days after Kakao dismissed reports that it planned to offload its entertainment arm, Kakao Entertainment, new chatter emerged Thursday suggesting its taxi-hailing platform, Kakao Mobility Corp., may also be up for sale. Kakao Mobility quickly pushed back. A company executive reportedly told employees Kakao has 'no plans to sell its management rights' in the unit, stating, "While discussions have taken place among shareholders and investors over the replacement of financial backers, no decisions have been finalized." The speculation coincides with a sweeping overhaul at Kakao, led by CEO Chung Shin-a, who has pledged to consolidate resources around artificial intelligence, positioning AI as the company's next growth engine. Since the revamp began, talk of offloading noncore subsidiaries has intensified, with many viewing major divestments as inevitable. The biggest jolt came earlier this month, when local reports said Kakao Entertainment — a heavyweight subsidiary estimated to be worth 10 trillion won ($7 billion) — could be up for sale. Kakao denied, responding that 'all strategic options remain on the table." But the vague wording, coupled with the unit's continued net losses, only fueled expectations that a deal may be imminent. Kakao Mobility is also reportedly in talks to replace its financial investors. Seoul-based private equity firm VIG Partners is said to be negotiating to acquire a combined stake exceeding 40 percent, and some market watchers believe VIG may eventually seek part of Kakao's 57 percent holding for potential ownership takeover. Despite its public denials of any formal restructuring, Kakao's actions tell a different story. Over the past two years, Kakao has trimmed its subsidiary count by more than 30. The company has also confirmed plans to sell Kakao VX, a golf-tech unit under Kakao Games, by year-end, while its labor union also claims the company is preparing to offload Kakao Healthcare soon. The overhaul is also a response to years of criticism over Kakao's unchecked expansion. What began in 2010 as a messenger app has morphed into a sprawling and loosely governed tech empire, with key units like Kakao Games, Kakao Bank and Kakao Pay listed independently from the parent — prompting backlash over governance and accountability. 'Kakao is at a pivotal moment,' said Wi Jong-hyun, a professor of business management at Chung-Ang University. 'It needs to define what to keep and what to let go, focusing its energy on areas that align with its core identity, KakaoTalk, and its growth prospects.' While Kakao Entertainment holds promise in content, Wi said its inability to pursue a market listing — an important consideration for corporate strategy — dealt a decisive blow. The entertainment arm has attempted an initial public offering since 2019, supported by aggressive acquisitions. While these deals fueled rapid expansion, they also came with significant financial and reputational costs. Its purchase of K-pop giant SM Entertainment sparked a major governance scandal, with key executives, including Kakao founder Kim Beom-su, facing legal scrutiny for alleged stock manipulation during the takeover. "With the market debut now gone up in smoke, the best option for Kakao is to sell the entertainment subsidiary, quickly distancing itself from the crisis, securing meaningful capital, and streamlining its portfolio," noted Wi. Sales of the mobility unit are also crucial for Kakao's next chapter, he added. 'Kakao Mobility has come to symbolize the company's reputation as a power-tripping conglomerate encroaching on small businesses, which is why Kakao has been trying to offload the unit for years.' Wi, a longtime critic of Kakao's sprawling business model, said Kakao Games should be next on the chopping block, citing its limited contribution to growth and weak connection with the company's core identity as a messenger. Regarding Kakao Pay — once rumored as a divestment target — Wi views it as a strategic asset. "The payments data it generates will be highly valuable, especially in light of Kakao's AI ambitions," he said. An industry official, speaking on condition of anonymity, also said the impact on Kakao Pay and fellow financial affiliate Kakao Bank is likely to be limited. 'Kakao Pay is a core business, tightly integrated with KakaoTalk and offering strong synergy potential,' the official said. 'Kakao Bank, meanwhile, operates with considerable autonomy from Kakao, its largest shareholder, as it is regulated under the Internet-Only Bank Act.' Despite the strategic value that subsidiary sales could bring, Kakao faces significant challenges, including strong resistance from its labor union, particularly as it considers sales to private equity firms. The union has consistently protested these sales, arguing that such moves would harm employee interests and undermine corporate value.
