Kakao will separate its artificial intelligence (AI) platform and affiliate businesses to pursue independent management. The plan is to speed up decision-making by business line and ensure the market properly assesses the companies' value.
Kakao said on the 21st that its board approved a plan to split the company through a spin-off into a newly established entity, "KakaoAI," and a surviving entity, "KakaoX." Based on net worth measured at book value, the split ratio is KakaoAI 0.36 and KakaoX 0.64. Existing shareholders will receive shares in each company in proportion to their equity holdings.
The decision aims to eliminate inefficiencies that arose from operating businesses with different characteristics and growth stages under a single decision-making system. Kakao has over the past two years restructured its business by winding down noncore operations and reducing the number of affiliates.
KakaoAI will focus on expanding daily life services that combine KakaoTalk with AI. KakaoX will oversee vertical businesses such as techfin, content, and mobility while seeking new growth engines. It will also nurture next-generation businesses following KakaoBank, Kakao Pay, and Kakao Mobility.
Kakao plans to clarify capital allocation and accountable management by business line to boost execution, and to have the two companies' values assessed under different standards.