[Newsis] 사진 확대 [Newsis]

Kakao Corp. is restructuring its business and investment framework to strengthen its artificial intelligence (AI) competitiveness. The company will split into Kakao AI, which will handle platforms and new technologies, and Kakao X, which will cover fintech and content, in a bid to secure independent management and new growth engines.

On the 21st, Kakao Corp. held a board meeting and approved a spin-off by division into the new company Kakao AI and the surviving company Kakao X. Based on net asset book value, the split ratio is 0.36 for Kakao AI and 0.64 for Kakao X. Kakao Corp. said it chose to separate businesses by their characteristics in order to build execution speed and a capital allocation system suited to the AI era.

A spin-off by division means that when a company is split, shares of the new entity are distributed to the shareholders of the surviving company in the same proportion. This differs from a spin-off in kind, in which the surviving company holds all of the new entity’s shares. As a result, existing Kakao Corp. shareholders will receive shares in both companies according to the split ratio.

Kakao AI, the new entity, will focus on expanding AI agents that can be used naturally in daily life, centered on KakaoTalk and Kanana. In effect, it is a standalone move for KakaoTalk. The plan is to organically connect Kakao Corp.’s wide range of services to create differentiated user experiences and revenue models.

When users issue commands through KakaoTalk messages, the AI agent will connect them to the services they need and improve its data and technology capabilities so it can deliver desired outcomes, from search and recommendations to purchases and payments. The goal is to increase platform engagement time by more than 50% and achieve annual average revenue growth of around 20% through 2030, reaching 6 trillion won in sales. Shina Chung, CEO of Kakao Corp., has been nominated to lead the company.

Kakao X will focus on steadily growing existing subsidiaries in finance, including KakaoBank Corp, Kakao Pay, and Kakao Pay Securities; content, including Kakao Entertainment Corp., SM Entertainment, and Kakao Piccoma; and mobility, including Kakao Mobility Corp. At the same time, it will pursue new businesses, including virtual assets, and invest in innovative companies.

The company plans to deploy about 230 billion won raised through asset monetization and about 410 billion won in investment funds held by its subsidiaries. It has set a goal of achieving an average annual revenue growth rate of 13.3% through 2030. Derek Do-Young Kim, CEO of Kakao Investment and head of the group investment strategy office at the Kakao CA Council, has been nominated as the representative.

Kakao Corp. plans to complete the split on January 1 next year after an extraordinary general meeting of shareholders on December 17, and to pursue a relisting of Kakao AI and a change listing for Kakao X on January 27. The detailed schedule may change depending on approvals and consultations with relevant authorities.

This article has been translated by GripLabs Mingo AI.