Kakao accused of misusing user data in ad service

Kakao accused of misusing user data in ad service

Tech in Asia·2025-08-26 17:00

Kakao is facing criticism in South Korea over its KakaoTalk messaging app’s Brand Message ad service, amid accusations of misusing personal data and shifting mobile data costs to users.

Seoul YMCA, a local civic group, said Kakao matches phone numbers from advertisers with those of users to target ads, arguing this goes beyond intended data use and infringes on privacy rights.

Brand Message, launched in May, allows businesses to send promotional messages to KakaoTalk users who have opted in to company updates.

Seoul YMCA claims Kakao does not clearly inform users about potential data charges resulting from ad content such as images and videos.

The group called for explicit user consent and clear disclosure of data use and potential costs, adding it may request a government investigation.

Earlier this month, the Special Messaging Operator Association also filed a complaint with South Korea’s Personal Information Protection Commission about the service.

Kakao said it sends ads only to users who have agreed to receive them.

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🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Kakao faces recurring privacy backlash that has previously driven mass user exodus

This isn’t Kakao’s first major privacy controversy. The company has a documented history of user backlash over data practices dating back over a decade.

In 2014, approximately 2 million KakaoTalk users switched to Telegram within just two weeks after the company complied with government requests to hand over chat records during investigations 2.

The exodus was so significant that Telegram quickly introduced a Korean version to accommodate the surge in demand, demonstrating that Korean users are willing to abandon even deeply integrated platforms over privacy concerns 2.

Earlier that same year, privacy advocates had already raised concerns about KakaoTalk automatically accessing users’ contact lists without explicit consent and its extensive data collection practices 3.

The current Brand Message controversy follows a similar pattern. Survey data shows 80% of respondents oppose Kakao extending user consent for company updates to cover general advertising messages 1.

This recurring cycle suggests that while KakaoTalk remains dominant in South Korea, the company continues to face challenges in balancing commercial interests with user privacy expectations.

2️⃣ New data privacy laws amplify regulatory pressure on messaging platforms

The timing of Kakao’s current controversy coincides with South Korea’s strengthened data protection framework, creating heightened regulatory scrutiny.

The amended Personal Information Protection Act took effect on March 13, 2025, expanding individuals’ control over their personal data and introducing new requirements for overseas data transfers 4.

These amendments align South Korea’s privacy laws with the European Union’s GDPR standards, establishing stricter compliance expectations for companies handling personal data 4.

Seoul YMCA’s threat to file a government complaint with the Personal Information Protection Commission demonstrates how consumer advocacy groups are utilizing these enhanced regulatory tools 1.

The fact that the Special Messaging Operator Association has already filed a complaint against Kakao with the Personal Information Protection Commission shows that regulatory bodies are actively investigating messaging platform practices 1.

This regulatory environment means that privacy missteps now carry greater potential consequences, as enforcement mechanisms have been strengthened and individual rights have been expanded under the new legal framework.

Recent Kakao developments

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