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Kakao Splits to Launch Kakao AI, Pushing KakaoTalk into the AI Era

Kakao, South Korea's internet giant, is making a bold move to reshape its future. On August 21, the company's board gave the green light to a spin-off plan that will create a new company, Kakao AI, dedicated to its messaging app KakaoTalk and artificial intelligence. The existing entity will be renamed Kakao X and will focus on investments, fintech, content, and mobility.

This restructuring is more than just a corporate reshuffle. Kakao wants to give each business its own operating system, accelerate its AI strategy, and make capital allocation more efficient. By separating the AI and messaging arm from the rest, the company hopes to move faster and think clearer.

Under the plan, the two companies will be split based on net asset book value, with Kakao AI taking 36% and Kakao X 64%. Existing shareholders will receive shares in both companies in proportion to their holdings. So, if you own Kakao stock today, you'll end up with shares in both new entities after the split.

Kakao AI is being positioned as the "AI core company." Its main asset? KakaoTalk, which boasts around 50 million users. The vision is to transform KakaoTalk from a simple messaging tool into an "AI interface with intelligent agents." These agents would understand user intent and conversation context, then connect you to services like search, recommendation, shopping, and payment—all within the chat window.

Imagine asking your chat app to find a good restaurant nearby, and it not only suggests options but also books a table and arranges payment. That's the kind of experience Kakao is aiming for.

The timeline is ambitious. Kakao plans to hold a special shareholders' meeting on December 17, 2026, and complete the split on January 1, 2027. After that, Kakao AI is slated to re-list on January 27, 2027, while Kakao X will undergo a listing change. These dates could shift depending on regulatory approvals and other procedural steps.

This spin-off signals a significant shift: AI is no longer just a part of Kakao's business—it's becoming the core. By leveraging KakaoTalk's massive user base, Kakao hopes to turn AI from a feature inside a chat tool into a smart gateway that connects everyday services.

For users, this could mean a more intuitive and seamless digital life. For investors, it's a chance to bet on a focused AI play. And for the tech industry, it's a reminder that even established giants are willing to reinvent themselves to stay ahead.

As the split moves forward, all eyes will be on how Kakao AI executes its vision. Will it succeed in making KakaoTalk the go-to AI assistant for millions? Only time will tell, but the ambition is clear.

Key Points

  • Kakao's board approved a spin-off to create Kakao AI, focusing on KakaoTalk and AI.
  • The remaining business will be renamed Kakao X, covering investments, fintech, content, and mobility.
  • The split ratio is 36% for Kakao AI and 64% for Kakao X based on net asset book value.
  • Kakao AI aims to upgrade KakaoTalk into an AI-powered interface with intelligent agents.
  • The split is expected to complete by January 1, 2027, with Kakao AI re-listing later that month.