April 19, 2024

• 

[THE INVESTOR] German carmaker Volkswagen and Korean social media giant Kakao are looking to more closely work on connected car technologies. 

VW’s German executives, including Jurgen Stackmann, VW global sales and marketing head, as well as Manfred Kantner, sales chief of India and Far East, met with Kakao CEO Rim Ji-hoon and Jung Joo-hwan, CEO of Kakao Mobility -- a wholly owned subsidiary of Kakao that will spin off later this year -- at the tech giant’s office in Pangyo, Gyeonggi Province on July 4. 

Stackmann posted a picture with Rim and Jung on his Twitter account, saying they discussed an “exciting project.”

This project could include installing Kakao’s navigation and artificial intelligence-powered voice assistant program into Volkswagen’s connected cars, said some industry sources. 

VW execs meet with Kakao counterparts at Kakao’s office in Korea.  Stackmann’s Twitter

“The two firms exchanged talks on how to create a bigger synergy with their respective services and technology,” a Kakao spokesperson told The Investor. “Nothing has been decided, but we will continue to seek partnerships with VW, especially in the areas of smart mobility.” 

Kakao has been ramping up technology development and investment to bolster its ride-sharing services. The firm recently established an independent entity called Kakao Mobility that operates Kakao’s popular taxi-hailing app, chauffeur and navigation service. It will also release new services in the second half of the year, including parking and payment services. Last week, the US investment firm TPG-led consortium said it has agreed to invest 500 billion won (US$433 million) in Kakao Mobility. 

In March, Kakao-owned venture capital K Cube Venture invested 700 million won in Persus, a local startup that develops security systems for connected cars. 

Meanwhile, VW previously announced it will sell cars fitted with public wireless LAN technology, allowing the cars to communicate with each other and transfer information about traffic, warnings and road conditions, starting 2019. The auto giant also clinched a partnership with the US chipmaker Nvidia to cooperate on AI technologies for its autonomous cars.

By Ahn Sung-mi (sahn@heraldcorp.com)