Kakao Executes AI-Focused Spin-Off... Reorganizes into 'Kakao AI' and 'Kakao X' Structure

Kakao is embarking on a large-scale corporate governance restructuring to separate its core AI business and investment business divisions.

Kakao (CEO Chung Sina) announced on the 21st that it held a board of directors meeting and resolved to establish a newly formed entity, 'Kakao AI Corp. (tentative)', through a simple equity spin-off of its KakaoTalk-based platform and AI business divisions. The surviving entity, which will be in charge of the investment business and management of major affiliates, will change its corporate name to 'Kakao X Corp. (tentative)'.

The spin-off ratio is set at 0.635 for the surviving entity (Kakao X) and 0.365 for the newly established entity (Kakao AI). The spin-off date is scheduled for January 1, 2027, and following approval at the general shareholders' meeting, the company will pursue the relisting of the newly established entity and the modified listing of the surviving entity on the KOSPI market on January 27, 2027.

Through this equity spin-off, Kakao aims to resolve the conglomerate discount and maximize business expertise and capital allocation efficiency in the AI sector. Kakao AI presented a mid-to-long-term goal of achieving over 6 trillion won in revenue and an operating profit margin of over 30% by 2030 by fully integrating agentic AI technology into the KakaoTalk interface.

Meanwhile, Kakao will also pursue a small-scale merger to absorb the investment business division of its wholly-owned subsidiary, Kakao Investment, in order to simplify governance at the group level. Trading of Kakao shares was suspended for 30 minutes from 10:04 a.m. on the 21st due to the disclosure of material information, before being resumed.