South Korea’s dominant chat app operator Kakao Corp said on Friday that it plans to spin off its chat app-based platform business into a new company, tentatively named KakaoAI, while retaining its investment operations under a firm to be renamed KakaoX.
Through 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 split on Jan 1.
KakaoAI will focus on AI, advertising, commerce and the KakaoTalk chat app platform, while KakaoX will manage and develop holdings across areas including fintech, content and mobility, Kakao said.
The company set 2030 targets of six trillion won (US$4.34 billion or RM17.57 billion) or more in revenue, along with an operating margin above 30%, for KakaoAI. Meanwhile, KakaoX has been set a target of 10 trillion won or more in revenue for the same year.
Kakao reported consolidated revenue of 8.1 trillion won in 2025, according to the company.
Kakao also pledged 300 billion won worth of share buy-backs and cancellations over the next three years following the split.
