(LEAD) Kakao Corp. to spinoff core biz to strengthen AI capabilities

Seoul, Aug. 21 - Kakao Corp., a leading South Korean company, announced on Friday its intention to split its primary operations into two separate entities, aiming to bolster its artificial intelligence (AI) capabilities. This decision, approved by the board, was detailed in a regulatory filing. The new entities, KakaoAI and KakaoX, are set to be formally established by January 1, with KakaoAI scheduled to relist on January 27.

KakaoAI will manage the company's popular messaging platform, KakaoTalk, with the long-term objective of evolving into an AI-driven core business. This company will explore innovative revenue models by integrating AI into advertising and commerce sectors, with a target of generating over 6 trillion won (approximately US$4.3 billion) in sales by 2030.

The current CEO of Kakao, Chung Shin-a, will head KakaoAI. The existing Kakao Corporation will be restructured as KakaoX, serving as the parent company for future growth initiatives. This includes Kakao's mobile payment service, mobility platform, and entertainment ventures, which will remain under KakaoX. Shareholders will be allotted shares in the new entities in proportion to their existing investments in Kakao, with a division ratio of 36:64 for KakaoAI and KakaoX, respectively.