Uber's play for Korea

Hello, this is Yoolim in Seoul. There’s a saying in Korea that even rivers and mountains can change over the course of a decade. That seems [View in browser]( [Bloomberg]( Hello, this is Yoolim in Seoul. There’s a saying in Korea that even rivers and mountains can change over the course of a decade. That seems to be the case with Uber. But first... Three things you need to know today: • A Japanese bus operator is setting up [an AI-powered hedge fund]( • The CEO of GlobalWafers says [build overseas to avoid tariffs]( • ByteDance is planning to take out [a record $9.5 billion loan]( One more try On his first official business trip to Seoul last week, Uber Technologies Inc. Chief Executive Officer [Dara Khosrowshahi](bbg://people/profile/2037795) wanted to remind everyone that the US company is serious about [expanding]( in South Korea. Uber is an underdog compared to dominant domestic rival [Kakao](bbg://securities/035720%20KS%20Equity), he knows, but he’s confident that can change. Part of it is the chaos and controversy swirling around the country’s internet leaders right now, but more on that later. Uber’s Korean business is accelerating after rebranding its domestic joint venture to Uber Taxi this year, Khosrowshahi said. Meeting local press on the 22nd floor of the gleaming Plaza Hotel, he stressed that Uber is a global company with great tech and a local partner, constructively working with the country’s regulators. This is a marked change from the Uber of 10 years ago. In late 2014, Seoul prosecutors indicted buccaneering co-founder and then-CEO [Travis Kalanick](bbg://people/profile/17502115) on charges of violating rules that require drivers and vehicles used in taxi services to be licensed. It was just one of a series of scandals at Uber — which in those days often chose to seek forgiveness after entering a market over asking permission first — that ultimately drove Kalanick out as CEO in 2017. It showed the country’s willingness to be firm with non-compliant service providers. That remains the case even for globally ubiquitous services like Alphabet Inc.’s Google Maps, which is restricted by national security laws around data privacy. Kalanick’s replacement, former Expedia Group Inc. chief Khosrowshahi, has taken a much more cooperative approach. He’s brought the company to [profitability]( this year, and he’s made more considered investments. So why the renewed focus on Korea? For one, South Korea’s per-capita GDP has [surpassed]( that of vaunted neighbor Japan. And it’s not like Uber has a lot of other priorities in Asia, after pulling out of China and much of Southeast Asia. Opportunity has arisen with the sudden [turmoil]( at Kakao. The internet giant’s high-profile takeover of K-pop agency SM Entertainment Co. is under investigation by authorities. That’s led to the [arrest]( of its billionaire founder Brian Kim and chief investment officer Bae Jae-hyun. The company now has [a new CEO]( and a full-blown crisis on its hands. Uber’s local partner, SK Group, has also served up a disruptive surprise. In May, a court ordered Chairman Chey Tae-won to pay his estranged wife about $1 billion in a divorce settlement. The following month, SK Group [announced]( plans to overhaul the group, prompting expectations it will get out of money-losing businesses and focus on core areas such as chips and AI. That development sparked speculation that SK Square may sell its 49% stake in the loss-making Uber Taxi venture to its San Francisco-based partner, which has 51%. So Uber may be in a position to acquire more of its local operation and capitalize on its biggest rival’s upheaval. Khosrowshahi wouldn’t be drawn to comment on the speculation, but his presence in the country speaks for itself. He didn’t cross an ocean just to see Gangnam’s Tehran Street honoring his native Iran. During his stay in Seoul, he met with leaders of high-powered companies like Hyundai Motor Co. and internet leader Naver Corp., according to people familiar with his itinerary. Before his media session, the Uber CEO said he had breakfast with his counterpart at SK Square, describing it as a positive exchange of strategy to build on their partnership. Uber still has an uphill climb ahead, as Kakao Mobility’s taxi-booking unit commands more than 90% of the market. But it’s clear the company smells opportunity. “Kakao Mobility? I’ve never heard of them,” Khosrowshahi joked when asked about the competition, eliciting a chuckle from the audience. “We have a lot of respect for them. They have the majority of the market here in Korea, but the fact is that we are growing significantly faster than the market.”—[Yoolim Lee](mailto:yoolim@bloomberg.net) The big story Anyone who has searched for a flight or an Uber ride is probably used to seeing the advertised price change before they actually come to book it. But this phenomenon of “dynamic” pricing is not widely known to apply to concert seats. Fans of Oasis discovered it on Saturday, when the cost of tickets for the British rock group’s comeback tour [more than doubled in the space of a few hours.]( Get fully charged Taiwan’s economy minister pushed back at criticism from Donald Trump, who claimed [the island was stealing the chip industry.]( HP will continue its pursuit of $4 billion in damages from the estate of recently [deceased British tech tycoon Mike Lynch.]( South Korean police is looking into messaging app Telegram for its alleged negligence over [deepfake-related sex crimes.]( More from Bloomberg Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Stay updated by saving our new email address Our email address is changing, which means you’ll be receiving this newsletter from noreply@news.bloomberg.com. Here’s how to update your contacts to ensure you continue receiving it: - Gmail: Open an email from Bloomberg, click the three dots in the top right corner, select “Mark as important.” - Outlook: Right-click on Bloomberg’s email address and select “Add to Outlook Contacts.” - Apple Mail: Open the email, click on Bloomberg’s email address, and select “Add to Contacts” or “Add to VIPs.” - Yahoo Mail: Open an email from Bloomberg, hover over the email address, click “Add to Contacts.” Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](