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Kakao Files for Spin-off and Re-listing to Focus on AI Business
Technology Services · Internet Software/Services · yonhap_finance · 2026-08-21
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Kakao has submitted an application for a spin-off to separate its AI and advertising divisions into a new entity, aiming to accelerate its AI-driven growth.
What Happened
Spin-off Application: The Korea Exchange has officially received Kakao's application for the re-listing of its shares following a planned corporate split. The company intends to carve out its AI and advertising business units into a new entity, while the remaining company will continue to operate its existing core businesses.
Strategic Restructuring: The new entity, tentatively named Kakao AI, will focus on advancing AI technologies integrated with the KakaoTalk platform and expanding its advertising operations. Meanwhile, the surviving entity, Kakao X, will concentrate on its established strengths in fintech, content, and mobility services.
Split Details: The spin-off ratio has been set at 0.36 for Kakao AI and 0.64 for Kakao X based on net asset book value. Existing shareholders will receive shares in both companies according to this ratio, with the split expected to be finalized on January 1, 2025, following an extraordinary general meeting on December 17.
Timeline and Outlook: The company aims to complete the re-listing of Kakao AI and the change of listing for Kakao X by January 27, 2025. Kakao reported a solid financial performance last year, with consolidated revenue of 8.09 trillion won and an operating profit of 732 billion won.