Kakao to Restructure Governance for AI Innovation: Announces Spin-Off into KakaoAI and KakaoX
Jisun A Appointed as CEO of KakaoAI
Kim Doyoung of Kakao Investment to Lead KakaoX
Kakao has announced a comprehensive reorganization of its governance structure to accelerate innovation in the era of artificial intelligence (AI).
On August 21, Kakao’s board of directors resolved to proceed with a vertical spin-off, resulting in two separate companies: KakaoAI (the newly established corporation) and KakaoX (the surviving entity). Based on the book value of net assets, the split ratio will be 0.36 for KakaoAI and 0.64 for KakaoX. Existing shareholders will be allocated shares in both companies according to this split ratio.
Kakao stated, "The purpose of this spin-off is to separate businesses with different characteristics and stages of growth to establish faster execution and capital allocation systems suited to the AI era."
KakaoAI, the newly established entity, will focus on rapidly expanding AI-driven services that people can experience in their daily lives, with KakaoTalk and AI at its core. Kakao plans to organically connect AI, advertising, and commerce with KakaoTalk as the hub, in order to create differentiated user experiences and profit models in the era of agentic AI. Jisun A, the current CEO of Kakao, has been appointed as the CEO of KakaoAI. Operating subsidiaries such as DK Techin and K&Works will be included under KakaoAI. Kakao’s goal is to achieve annual revenue growth of about 20% through 2030, aiming for KakaoAI revenue to exceed 6 trillion won.
KakaoX, the remaining entity, will play the role of supporting and managing subsidiary growth. KakaoX will discover and nurture new growth pillars such as a second KakaoBank, KakaoPay, and Kakao Mobility. Kim Doyoung, CEO of Kakao Investment and head of the Kakao CA Council Group Investment Strategy Office, has been appointed as the CEO of KakaoX.
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Kakao plans to complete the split on January 1 of next year following an extraordinary general meeting of shareholders scheduled for December 17 of this year, and aims to relist KakaoAI and modify the listing of KakaoX on January 27 of the same month.
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