Kakao unveils ai-focused spin-off strategy

Kakao, a leading South Korean internet company, has announced that its board of directors has approved a plan to split the company into two separate entities. The new entity, named Kakao AI, will focus on the development of artificial intelligence and the KakaoTalk messaging platform, which serves approximately 50 million users. The remaining business will be rebranded as Kakao X, which will concentrate on investment, fintech, content, and mobility sectors. The restructuring aims to create independent operating systems for both businesses, accelerate the implementation of Kakao's AI strategy, and enhance capital allocation efficiency. Under the proposed split, Kakao AI and Kakao X will be divided based on a 36% and 64% ratio of their net asset book value. Shareholders will receive shares in both companies proportionally to their current holdings. Kakao AI is intended to become the 'AI core company,' leveraging KakaoTalk's user base to transform the platform from a traditional messaging tool into an 'AI interface with intelligent agents' capable of understanding user intent and context. This will enable the integration of services such as search, recommendation, shopping, and payment through AI-driven agents. The timeline for the restructuring includes a special general meeting of shareholders scheduled for December 17, 2026, with the company split expected to be completed by January 1, 2027. Following this, Kakao AI plans to re-list on the stock market on January 27, 2027, while Kakao X will complete its listing change. Specific dates may be adjusted based on negotiations with regulatory authorities and related procedures. The spin-off marks a significant shift for Kakao, elevating AI from a supporting component of its business to an independent growth engine. The company aims to use KakaoTalk's large user base to advance AI beyond its current role as a feature within a chat tool, positioning it as a smart entry point for daily services.