90% of Koreans use Kakao apps daily. So when Kakao experienced an outage last weekend, the country went into chaos. Everyday interactions like ordering coffee or getting a cab were disrupted, and the government is now opening an investigation on their monopoly on the market. The outage was caused by a fire at a data center that affected over 30,000 servers, and services are still not fully recovered. Meanwhile, Naver - a competing IT giant that also shared the data center - was able to quickly restore its services. Now, experts question if Kakao is investing enough in data backup and emergency prep, while national security concerns rise in case of similar blackouts. On Monday, Kakao Corp shares plunged more than 9%, to their lowest since May 2020. 47 million people can’t live without Kakao–are you one of them?
90% of Koreans use Kakao apps daily. So when Kakao experienced an outage last weekend, the country went into chaos. Everyday interactions like ordering coffee or getting a cab were disrupted, and the government is now opening an investigation on their monopoly on the market. The outage was caused by a fire at a data center that affected over 30,000 servers, and services are still not fully recovered. Meanwhile, Naver - a competing IT giant that also shared the data center - was able to quickly restore its services. Now, experts question if Kakao is investing enough in data backup and emergency prep, while national security concerns rise in case of similar blackouts. On Monday, Kakao Corp shares plunged more than 9%, to their lowest since May 2020. 47 million people can’t live without Kakao–are you one of them?