Kakao Mobility buys 49% in KFFA's freight matching platform for truckers

[Graphics by Song Ji-yoon]

South Korea’s leading mobility platform operator Kakao Mobility is buying a 49 percent stake in Hwamulmadang, the freight matching platform for truckers, from the Korea Freight Forwarders Association (KFFA), while denying the purchase is aimed to expand dominance on the mobility front.

The KFFA established the platform with KT in 2014 for joint operation until 2019. The remaining 51 percent will remain with KFFA.

Details about the acquisition price have not been disclosed under the agreed terms.

With the stake purchase, Kakao Mobility plans to help digitalization of the freight matching platform.

“Manual work will be digitalized for convenience and cost reduction. Hwamulmadang has already secured many clients – transporters, and thus various improvements are expected from digitalization of transportation data,” said the company.

Kakao Mobility said the KFFA asked the latest partnership first, adding that the cooperation is to achieve growth by establishing a win-win system with the industry.

“The company last year unveiled its policy that it would review a new service or business ways based on cooperation with the industry to respect the existing industry ecosystem and achieve growth of both. The latest partnership for digitalization also is part of the efforts,” said an official from Kakao Mobility.

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