Odaily Planet Daily report: The board of South Korean internet company Kakao has resolved to spin off and establish KakaoAI, with KakaoX as the surviving entity. KakaoAI will focus on AI businesses centered around KakaoTalk, while KakaoX will oversee core subsidiaries and new business investments. Existing shareholders will receive shares in both companies in proportion to their net asset book values at a ratio of 0.36 to 0.64.
KakaoAI aims to transform KakaoTalk, with approximately 50 million users, into an agent-based AI interface that connects AI, advertising, and e-commerce services. The company plans to achieve over 20 million daily active AI users, increase platform dwell time by more than 50%, and generate annual revenue of 6 trillion Korean won by 2030.
KakaoX will be responsible for the development of core subsidiaries such as KakaoBank, KakaoPay, Kakao Mobility, and Kakao Entertainment, as well as identifying new business opportunities and investing in innovative companies. The company plans to utilize approximately KRW 2.3 trillion in assets from asset liquidity and KRW 4.1 trillion in investment funds held by its subsidiaries, aiming to achieve revenue exceeding KRW 10 trillion by 2030.
KakaoAI plans to allocate 20% to 35% of its adjusted free cash flow toward shareholder returns, while KakaoX intends to dedicate 30% of dividends and investment income from its subsidiaries to shareholder returns. Kakao plans to hold an extraordinary general meeting on December 17, complete the spin-off on January 1, 2027, and facilitate the relisting of KakaoAI and the listing change of KakaoX on January 27. (ZDNet)