“KakaoTalk Fallout” Boosts NateOn: A Bold Ad-Free Update Despite Losses

KakaoTalk Faces Backlash Over Ad Expansion
NateOn Goes the Opposite Way with “No Ads” Policy
A Risky Gamble Amid Losses — Can It Win Over KaTalk Exodus?

NateOn, which has recently benefited from the backlash against KakaoTalk’s latest update, is taking a radical turn by abandoning advertising revenue to focus solely on the essence of messaging. The overhaul is part of a “Voice of Customer (VOC)-based improvement project,” a feedback-driven initiative that collects user opinions through official threads and social media (SNS) channels. The main goal is to strengthen user convenience and trust — a move that directly contrasts KakaoTalk’s expansion of advertising zones via the “Friends” tab’s feed-style conversion and short-form content integration.

NateOn Enhances Service Based on User Feedback

On October 20, Nate Communications, the operator of NateOn, announced that it would begin a service overhaul and feature update at the end of this month, reflecting user feedback. As a first step, the company made a bold decision to completely remove ads from its mobile version — a clear signal of its commitment to focus exclusively on the core of messaging. The move is considered a risky gamble given its deficit situation, as more than 60% of NateOn’s total revenue currently comes from advertising. By removing ads, the company is sacrificing short-term performance to reinforce its brand image.

The update, which will continue through the end of November, will also include features aimed at improving user trust and convenience. A new “two-step verification” system will be introduced to enhance account security, while NateOn plans to collaborate with leading domestic cybersecurity firms to ensure a safe and reliable user environment. The update will also remove the “This message has been deleted” trace when messages are deleted from chat rooms. Other improvements include a “forced removal” function allowing chatroom hosts to expel specific users, and a “hidden status” option that conceals device connection information — available on both mobile (iOS/AOS) and Mac versions.

Additional usability enhancements include the “Select All” option in the mobile file box (AOS) and a “private setting option” for the news section at the bottom of the PC version. Building upon a trusted communication environment, NateOn also aims to make messaging more engaging. To that end, it is developing a wider range of trendy and expressive emoticons, expanding on the existing “My Emoticon” feature.

LINE and Telegram See Brief Gains but Limited Rebound

NateOn’s latest update aims to capitalize on the positive sentiment following the KakaoTalk controversy, which triggered a wave of user migration late last month. KakaoTalk had revamped its Friends tab into an Instagram-style feed and added a short-form content section to expand ad space — changes that were met with intense backlash. In response, some users organized a “Boycott KakaoTalk” campaign, shifting to alternative messengers such as NateOn, LINE, and Telegram.

Among them, NateOn reaped the greatest benefit. According to app analytics platform Mobile Index, the average daily installation count of NateOn jumped from 534 on October 22–24 to 970 on the 25th, then surged to 11,647 on the 26th and 22,447 on the 27th — an explosive 3,838% increase (nearly 39-fold) compared to October 23, the day KakaoTalk announced its update. LINE also saw a rise in downloads, with new installations reaching about 29,000 on October 26 — more than triple the 9,160 recorded on October 22, before KakaoTalk’s update. Telegram likewise experienced a temporary uptick, though the growth was marginal.

Telegram briefly gained traction in Korea but failed to become mainstream due to lingering security controversies and its association with illicit activity. Its user interface and communication style also diverge from typical Korean user behavior. LINE, though boasting hundreds of millions of users in Japan and Southeast Asia, has struggled to establish a foothold in Korea — largely because it is perceived as Japan’s de facto “national messenger,” with 96 million Japanese users. Moreover, LINE’s weak synchronization between PC and mobile platforms and its lack of integration with payment services limit its appeal. Many Play Store reviews echo these frustrations, with users complaining that “there are too many issues” and that “transitioning from KakaoTalk is too cumbersome.”

Misjudgment Driving User Exodus — Echoes of Global Failures

Experts warn that if KakaoTalk fails to succeed with its latest update, the user exodus could solidify into a long-term trend. While Kakao argues that the update was an unavoidable choice amid growth stagnation, industry observers view it as a regression that runs counter to global trends — where major platforms are doubling down on messaging capabilities. Meta’s text-based platform Threads, for instance, added a direct message (DM) feature in July and began rolling out group DMs supporting up to 50 participants this month. Meta is also reinforcing Instagram’s messenger function, with DMs now driving user engagement alongside short-form Reels. The platform’s overall UX structure is being redesigned around “conversation-centric interaction.”

Platform X (formerly Twitter) is following a similar trajectory. In June, X introduced “XChat,” an encrypted chat service offering end-to-end encryption (E2EE) for secure private messaging. Likewise, TikTok has integrated video comments, story sharing, and DMs among friends to enhance interpersonal communication. By boosting in-feed interactions, TikTok seeks to expand real-time conversation and community formation alongside content consumption.

In stark contrast, KakaoTalk has turned its Friends tab into an Instagram-like feed and introduced a short-form tab, effectively transforming its messenger into a social media platform. The strategy aims to heighten user “lock-in” and maximize ad revenue by inserting more ads into scrolling feeds. Kakao also planned to leverage artificial intelligence (AI) integration across various in-app services to generate new synergies — part of a broader push to fill the gap left by its recent corporate downsizing. Having trimmed 45 subsidiaries over the past two years to halt its “tentacle-like expansion,” Kakao is now looking to advertising and AI as new growth engines. Yet, in doing so, the company has abandoned its founding principles and sacrificed user experience for short-term growth.

User backlash was swift and fierce. Many denounced the app as a “hybrid of TikTok and Instagram,” rejecting the erosion of simplicity and privacy that had once defined KakaoTalk’s appeal. The proliferation of ads only fueled discontent. Global social platforms have enhanced their messaging functions by adding private communication features to open networks — a move generally welcomed by users. Kakao, however, took the opposite path, compromising its messenger identity. Though the company rolled back its update after just six days, criticism continues to mount.

KakaoTalk is hardly alone in facing user revolt. Netflix, the once-dominant OTT giant, social platform Digg, and early online community pioneer Freechal all suffered steep declines after ignoring their core user bases. Netflix alienated subscribers by splitting its DVD and streaming plans, effectively raising prices and triggering mass cancellations and a stock collapse. Digg lost its loyal users to Reddit after abandoning community-driven curation in favor of major media content. Freechal, once a leading Korean online forum, fell apart after abruptly introducing paid subscriptions, prompting a mass user migration to rival services. Each case underscores a common lesson — neglecting the trust of one’s user base comes at a heavy price.