Kakao confirmed the reappointment of Chung Shin-a as CEO and said it will move to accelerate a growth strategy centered on artificial intelligence (AI) and KakaoTalk. To shareholders' criticism over the weak stock price, it said it will raise corporate value through share buybacks and cancellations and by monetizing its AI business.
Kakao held its 31st annual general meeting of shareholders at its Jeju headquarters, Space Dot One, on the 26th and approved the agenda item to reappoint Chung Shin-a as an inside director. With that, Chung will lead the company through 2028. An agenda item to add "AI development and services" to the company's articles of incorporation also passed at the meeting.
Chung said, "As CEO, I feel a heavy sense of responsibility for causing deep concern due to the continued weak stock price," adding, "This year, we will swiftly execute growth strategies for the core businesses defined by KakaoTalk and AI and make the revenue-generating business model concrete." Chung went on to note, "As CEO, I am buying about 100 million won worth of shares on the open market every half year," and also said the shares will not be sold during the term. Kakao's share price hit an intraday peak of 173,000 won in Jun. 2021 and is now hovering in the 40,000–50,000 won range.
Kakao will also push service improvements that reflect user feedback. Chung said the company will launch "Kanana Lab" in the first half of the year so users can try out new AI services before release and submit opinions in a survey format. The aim is to avoid repeating user complaints that surfaced during last year's KakaoTalk revamp.
The winding down of noncore businesses is also in its final stage. Kakao reduced its affiliates from 147 to 94 and is also pushing the sale of AXZ, which runs the Daum portal, and Kakao Games. Chung said, "Each transaction will be pursued in a way that does not undermine the company's stability while allowing us to maintain strategic partnerships."
It is also strengthening shareholder returns. Kakao will increase the 2025 fiscal year dividends aggregates by 10% from the previous year and will cancel 1,420,723 of its treasury shares, more than half of its holdings. The size of the board was reduced from eight to six. Based on this, Kakao set targets for this year of more than 10% annual sales growth and a 10% operating margin.