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Kakao Splits to Launch AI-Focused Company

Kakao, South Korea's internet giant, is making a bold move to put artificial intelligence at the heart of its business. On August 21, the company's board approved a plan to split into two entities: a new company called Kakao AI, which will focus on KakaoTalk and AI, and the existing company, renamed Kakao X, which will handle investments, fintech, content, and mobility. The goal is to give each business its own operating system, speed up AI strategy, and make capital allocation more efficient.

Under the plan, the two companies will be split based on net asset book value, with a ratio of 36% for Kakao AI and 64% for Kakao X. Existing shareholders will receive shares in both companies in proportion to their holdings. After the split, Kakao AI will be positioned as the "AI core company," leveraging KakaoTalk's massive user base of about 50 million people. The vision is to transform KakaoTalk from a simple messaging app into an "AI interface with intelligent agents" that can understand user intent and context, connecting services like search, recommendation, shopping, and payment through AI agents.

Timeline-wise, Kakao plans to hold a special shareholders' meeting on December 17, 2026, and complete the split on January 1, 2027. Following that, Kakao AI is expected to be re-listed on January 27, 2027, while Kakao X completes its listing change. These dates could shift depending on regulatory approvals and other procedures.

This split marks a significant shift: AI is no longer just a part of Kakao's business—it's becoming an independent growth engine. By leveraging KakaoTalk's huge user base, Kakao hopes to turn AI from a feature inside a chat tool into a smart gateway that connects everyday services. It's a strategic bet that could reshape how millions of people interact with technology.

Key Points

  • Kakao's board approved a split to create a new AI-focused company, Kakao AI, and rename the existing entity Kakao X.
  • The split ratio is 36% for Kakao AI and 64% for Kakao X, based on net asset book value.
  • Kakao AI will focus on KakaoTalk and AI, aiming to upgrade the messaging app into an intelligent assistant.
  • The split is expected to complete by January 1, 2027, with Kakao AI re-listing on January 27, 2027.
  • This move elevates AI to an independent growth engine, leveraging KakaoTalk's 50 million users to connect services like search, shopping, and payment.