Kakao is splitting into Kakao AI, focused on KakaoTalk and artificial intelligence (AI), and Kakao X, which will handle investments and new business development. Kakao AI aims to integrate AI with KakaoTalk to secure new growth opportunities, while Kakao X will focus on the growth of existing core businesses and new investments. Jeong Sin-a, the current CEO of Kakao, will lead Kakao AI, and Kim Do-young, CEO of Kakao Investment and head of Kakao's Group Investment Strategy Office, will head Kakao X.
On August 21, Kakao's board of directors approved the division into the newly established Kakao AI and the continuing Kakao X. The split ratio was determined based on the book value of net assets, with Kakao AI receiving 0.36 and Kakao X receiving 0.64. Existing Kakao shareholders will receive shares in both Kakao AI and Kakao X according to this ratio.
Kakao AI Aims for 6 Trillion Won Revenue by 2030
Kakao AI plans to grow as an 'AI core company' that connects AI, advertising, and commerce centered around KakaoTalk. The strategy includes creating new user experiences and revenue models using AI within KakaoTalk, particularly in the era of agentic AI. Subsidiaries such as DK Tech and K&Works will also be included under Kakao AI.
Kakao has set a goal for Kakao AI to achieve over 20 million daily active users (DAU) by 2030. The plan includes increasing user engagement on KakaoTalk by more than 50% and expanding new revenue models such as AI advertising, agentic commerce, and subscriptions, aiming for an average annual revenue growth of 20% to exceed 6 trillion won by 2030.
Kakao X to Focus on Investments with 6 Trillion Won Resources
Kakao X will transform into a 'future value investment company' focused on supporting the growth of major subsidiaries and new investments.
It will support the growth of existing core business areas, including Kakao Bank, Kakao Pay, Kakao Pay Securities in the tech-fin sector, Kakao Entertainment, SM Entertainment, and Kakao Piccoma in the content sector, and Kakao Mobility in the mobility sector, while also pursuing new business development and investments in innovative companies.
Kakao X plans to utilize approximately 2.3 trillion won secured through asset liquidity and about 4.1 trillion won held by its subsidiaries for investment purposes.
Based on the growth of core businesses and new investments, Kakao X aims to achieve an average annual growth rate of 13.3% in major business revenues by 2030, establishing a foundation for over 10 trillion won in revenue. The goal is to create a virtuous cycle of capital where investment results lead to shareholder returns and reinvestment.
Kakao plans to hold an extraordinary shareholders' meeting on December 17 to finalize the split by January 1, 2027, followed by the relisting of Kakao AI and the change of listing for Kakao X on January 27, 2027.
* This article has been translated by AI.
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