Kakao to Split into KakaoAI and KakaoX, Focusing on AI Business and Future Investments, Respectively

Odaily News: The board of directors of Korean internet company Kakao has resolved to proceed with a corporate split, establishing KakaoAI and designating KakaoX as the surviving entity. KakaoAI will focus on AI businesses centered around KakaoTalk, while KakaoX will oversee core subsidiaries and new business investments. Existing shareholders will receive shares in both companies based on a net asset book value ratio of 0.36 and 0.64, respectively.KakaoAI will transform KakaoTalk, which has approximately 50 million users, into an "agentic AI interface," connecting AI, advertising, and e-commerce businesses. The company plans to achieve over 20 million daily active AI users by 2030, increase platform dwell time by more than 50%, and reach annual revenue of 6 trillion Korean won. Current Kakao CEO 정신아 is slated to become the representative.KakaoX will oversee the development of core subsidiaries including KakaoBank, KakaoPay, Kakao Mobility, and Kakao Entertainment, while also pursuing new business opportunities and investments in innovative companies. The company plans to utilize approximately 2.3 trillion Korean won from asset securitization and roughly 4.1 trillion Korean won in investment funds held by its subsidiaries, aiming to achieve revenue exceeding 10 trillion Korean won by 2030.KakaoAI plans to allocate 20% to 35% of adjusted free cash flow for shareholder returns, while KakaoX intends to use 30% of subsidiary dividends and investment gains for shareholder returns. Kakao plans to hold an extraordinary general meeting on December 17, complete the split on January 1, 2027, and pursue a relisting of KakaoAI and listing change for KakaoX on January 27. (ZDNet)