{"slug": "kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen", "title": "Kakao's turnaround hits roadblocks as AI, labor woes deepen", "summary": "Kakao's turnaround efforts face mounting challenges as weak AI execution, slowing core businesses, and labor tensions cloud its growth outlook, according to Samsung Securities. The brokerage cut its target price to 44,000 won from 60,000 won, citing that Kakao's AI agents are failing to deliver results and restructuring is losing momentum due to labor opposition. Despite expected strong quarterly profits from asset sales and cost controls, the company's growth strategy has hit roadblocks.", "body_md": "Kakao’s turnaround efforts are facing mounting challenges as weak artificial intelligence (AI) execution, slowing core businesses and escalating labor tensions cloud its growth outlook, even as it is expected to post another quarter of strong profits driven by restructuring and cost controls. Samsung Securities said on Monday that Kakao’s second-quarter operating profit is expected to rise 18 percent year-over-year to 231.1 billion won ($154.4 million), while revenue is forecast to increase 1.2 percent to 2.48 trillion won, driven by asset sales and restructuring. However, the brokerage cut its target price to 44,000 won from 60,000 won, citing concerns that the company's growth strategy had hit roadblocks. “Kakao’s introduction of AI agents, which it has positioned as a growth driver, is failing to deliver results, while its restructuring efforts are also losing momentum due to labor opposition,\" Samsung Securities analyst Oh Dong-hwan said in a report. He added that it was difficult to justify a valuation premium over peers under the current circumstances, citing prolonged lab", "url": "https://wpnews.pro/news/kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen", "canonical_source": "https://www.koreatimes.co.kr/business/tech-science/20260715/kakaos-turnaround-hits-roadblocks-as-ai-labor-woes-deepen?utm_source=rss", "published_at": "2026-07-14 22:22:04+00:00", "updated_at": "2026-07-14 22:22:40.793926+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-agents", "ai-products"], "entities": ["Kakao", "Samsung Securities", "Oh Dong-hwan"], "alternates": {"html": "https://wpnews.pro/news/kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen", "markdown": "https://wpnews.pro/news/kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen.md", "text": "https://wpnews.pro/news/kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen.txt", "jsonld": "https://wpnews.pro/news/kakao-s-turnaround-hits-roadblocks-as-ai-labor-woes-deepen.jsonld"}}