The decision was made at its board of directors' meeting the previous day, with the spinoff scheduled to be completed by Jan. 1 next year, after getting shareholder approval at an extraordinary shareholders' meeting slated for Dec. 17.
Under the plan, KakaoAI will be created as a new entity in charge of its popular messenger app KakaoTalk and other AI-related services, while the current company will be renamed KakaoX and focus on investment and the development of future businesses.
Kakao said the new entity, putting AI at its core, will introduce new AI-powered user experiences and revenue models, including advertising, agentic commerce and subscriptions, under the leadership of its CEO Chung Shin-a.
KakaoAI has set a goal of reaching at least 20 million daily active users of its AI-related services by 2030. It also aims to increase the time users spend on KakaoTalk by more than 50 percent and achieve average annual revenue growth of about 20 percent, reaching more than 6 trillion won (US$4.3 billion) in revenue by 2030.
KakaoX, meanwhile, will support the growth of major affiliates and seek new investment and business opportunities.
It plans to raise about 2.3 trillion won by monetizing its assets and use another 4.1 trillion won in resources held by its subsidiaries. Through 2030, it aims to grow revenue from its major businesses by an average of 13.3 percent a year and lay the groundwork for annual revenue of more than 10 trillion won.
Kim Do-young, who currently leads Kakao Investment and the company's investment strategy office, has been named to lead KakaoX.
Under the proposed split, Kakao shareholders will receive shares in both companies in proportion to their existing holdings, with the split ratio set at 36 percent for KakaoAI and 64 percent for KakaoX.
Kakao plans to relist KakaoAI while making changes to KakaoX's listing status on Jan. 27 next year.
After Kakao announced its split plans, its shares were trading at around 35,000 won in the early afternoon, down about 3,000 won or nearly 9 percent from the previous session after falling as low as 33,600 won earlier in the day.
AJP Takeaways
• Kakao will split its key businesses into KakaoAI and KakaoX, with the spinoff scheduled for completion on Jan. 1, 2027, subject to shareholder approval on Dec. 17, 2026.
• KakaoAI will oversee KakaoTalk and AI-related services, with plans for AI-powered advertising, agentic commerce and subscription services under CEO Chung Shin-a.
• KakaoAI aims to reach at least 20 million daily active AI users and generate more than 6 trillion won in annual revenue by 2030, while increasing time spent on KakaoTalk by more than 50 percent.
• KakaoX will focus on investments and new businesses, planning to raise about 2.3 trillion won through asset monetization and use about 4.1 trillion won in resources held by subsidiaries.
• Kakao shares fell nearly 9 percent after the split announcement, trading around 35,000 won in the early afternoon on Aug. 21, 2026, after hitting an intraday low of 33,600 won.
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