Kakao to spin off chat app-based platform business into KakaoAI, relist in 2027

[SEOUL] South Korea’s dominant chat app operator Kakao Corp said on Friday (Aug 21) it plans to spin off its chat app-based platform business into a new company, tentatively named KakaoAI, while retaining investment operations in a firm renamed KakaoX.

With this move, the company is seeking to address a conglomerate discount and strengthen business specialisation, Kakao said in a regulatory filing.

The company expects the new entity to relist on the Korea Exchange on Jan 27, 2027, following a planned Jan 1 split.

KakaoAI will focus on AI, advertising, commerce and the KakaoTalk chat app platform, while KakaoX will manage and develop holdings in areas including fintech, content and mobility, Kakao said.

Kakao set 2030 targets of 6 trillion won (US$4.34 billion) or more in revenue and an operating margin above 30 per cent for KakaoAI, while setting a target of 10 trillion won or more in revenue for KakaoX for the same year.

Kakao had reported consolidated revenue of 8.1 trillion won in 2025, according to the company.

SEE ALSO

Samsung’s US$400,000 bonus fuels labour disputes across South Korea

K-pop, Chinese games to drive Asia tech sector growth: Macquarie

South Korean court clears Kakao founder of stock manipulation charges

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Kakao also pledged 300 billion won of share buybacks and cancellations over three years after the split. REUTERS