News / Korea / yonhap_finance
Kakao Shares Tumble Over 7% Following Spin-off Announcement
Technology Services · Internet Software/Services · yonhap_finance · 2026-08-21
035720
Kakao shares fell sharply as investors reacted negatively to the company's plan to split into two separate entities, Kakao AI and Kakao X.
What Happened
Spin-off Plan: Kakao's board of directors has approved a plan to split the company into two entities: Kakao AI and Kakao X. Existing shareholders will receive shares in both companies based on the specified split ratio.
Market Reaction: Despite the restructuring news, Kakao's stock price plummeted by 7.49%, hitting a monthly low. Investors appear to have interpreted the split as a source of uncertainty rather than a catalyst for value creation.
Restructuring Details: Kakao AI will focus on artificial intelligence initiatives, while Kakao X will continue as the surviving entity. The split is scheduled to be finalized on January 1, 2025, following an extraordinary general meeting in December.
Analyst Perspectives: Market experts suggest that Kakao X may be valued as a holding company, while Kakao AI could see a re-rating if the business simplification leads to improved operational efficiency. The market remains cautious until the new structure is fully implemented.