Kakao has detailed its growth strategy centered on KakaoX, the surviving entity following its corporate split, aiming to enhance synergy among its subsidiaries and increase corporate value. The company has identified Techfin, Content, and Mobility as its three core business areas, with plans to boost KakaoX's consolidated revenue to over 10 trillion won by 2030.
On October 13, Kakao held a joint analyst meeting at its AI campus in Yongin, Gyeonggi Province, ahead of its planned split in January. The meeting revealed KakaoX's and its major subsidiaries' long-term growth strategies, outlining the direction of business operations and synergy among subsidiaries. CEOs from key subsidiaries, including Kakao, KakaoPay, KakaoBank, Kakao Entertainment, and KakaoPiccoma, presented their plans.
KakaoX aims to grow its consolidated revenue from approximately 56 trillion won in 2025 at an average annual rate of about 13%, targeting over 10 trillion won by 2030.
Kakao also announced four candidates for independent directors of KakaoX: Ham Chun-seung, president of PH & Company; Cha Kyung-jin, a professor at Hanyang University; Kim Sun-wook, managing partner at law firm Se-seung; and Jo Sang-wook, a senior advisor at PJT Partners. Notably, Jo Sang-wook is a former head of Morgan Stanley Korea's investment banking division, bringing expertise in investment finance. Kakao plans to establish a board of directors specialized in capital allocation and investment to support efficient decision-making.
The company will strengthen inter-subsidiary business connections. In Techfin, it aims to build an on-chain ecosystem linking digital assets with payments and remittances. The Content division will connect K-pop with mobility, payments, fandom, and merchandise. In Mobility, the focus will be on expanding autonomous driving and physical AI to develop robo-taxis and robo-trucks, as well as financial and autonomous transport services.
Financial subsidiaries are positioning AI and digital assets as growth drivers. KakaoPay plans to enhance personalized financial and non-financial product recommendations using MyData and integrate its payment service with KakaoTalk. The 'ChatGPT for Kakao' initiative is set to introduce features for payment, remittance, and point balance inquiries. KakaoPay will expand its digital wallet into a 'super wallet' supporting stablecoins, real-world assets, and local currencies.
KakaoBank is pursuing an 'AI-native bank' model utilizing its own data and large language models (LLMs). It aims to increase the proportion of corporate loans to 18% of total loans by 2030, with non-interest income accounting for over 40% of operating revenue and a return on equity (ROE) of 15%.
The Content division plans to expand its business around global fandoms. Kakao Entertainment will enhance the global distribution of music intellectual property (IP) and connect its platforms Melon, BeRise, and Ticket for a seamless fan experience from music listening to community engagement, concert ticketing, and merchandise purchasing. SM Entertainment aims to grow its concert scale and related merchandise businesses based on its global fandom.
KakaoPiccoma intends to develop AI video, BL, and merchandising as three new business areas. It aims to grow into Japan's leading multimedia content platform by 2030 through AI animation and live-action video production using webtoons and novels, as well as expanding its product offerings like 'Piccoma Kuji.'
Kakao will split into two entities on January 1: KakaoAI, which will handle AI operations, and KakaoX, which will manage non-AI businesses and investments. KakaoX will oversee subsidiary management and investments, while KakaoAI will focus on core services like KakaoTalk and AI initiatives, each pursuing independent growth strategies.
Kim Do-young, the designated CEO of KakaoX, stated, 'In the mobility sector, we expect future growth through the expansion of autonomous driving and physical AI. We will create new growth opportunities by connecting strong platforms and foundational technologies across our core business areas of Techfin, Content, and Mobility, ultimately enhancing KakaoX's long-term corporate value.'
* This article has been translated by AI.
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