South Korea's dominant chat app operator Kakao Corp (035720.KS) said on Friday 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 January 27, 2027, following a planned January 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 ($4.34 billion) or more in revenue and an operating margin above 30% 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.
Kakao also pledged 300 billion won of share buybacks and cancellations over three years after the split.
($1 = 1,381.2700 won)
