Kakao to spin off chat app-based platform business into KakaoAI, relist in 2027
South Korean chat app giant Kakao Corp announced on August 21 its plans to spin off its chat app-based platform business into a new entity called KakaoAI while retaining investment operations in a firm named KakaoX. The goal of this move is to tackle a conglomerate discount and enhance business specialization, according to a regulatory filing by Kakao.
Formerly known as Kakao Corp, the company plans to relist KakaoAI on the Korea Exchange on January 27, 2027, after a January 1 split. The new entity will focus on AI, advertising, commerce, and the KakaoTalk chat app platform. In contrast, KakaoX will manage and develop investments in fintech, content, and mobility. Both entities have set ambitious revenue targets for 2030, with KakaoAI aiming for over 6 trillion won (US$4.34 billion) in revenue and a 30% operating margin, while KakaoX aims for 10 trillion won or more in revenue.
Kakao also pledged to conduct 300 billion won in share buybacks and cancellations over three years post-split.
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