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

• KakaoAI will focus on AI, advertising, commerce and the KakaoTalk platform, targeting 6 trillion won ($4.34 billion) revenue and 30%+ operating margin by 2030
• KakaoX will manage holdings in fintech, content and mobility, with a 2030 revenue target of 10 trillion won or more
• The spin-off is scheduled for January 1, 2027, with relisting planned for January 27, 2027; Kakao reported 8.1 trillion won consolidated revenue in 2025

Summary: Kakao Corporate Restructuring and AI Focus

Key Development:

South Korean messaging giant Kakao Corp announced plans to split its operations into two entities: KakaoAI (focusing on core platform business) and KakaoX (managing investments), effective January 1, 2027. KakaoAI is scheduled to relist on the Korea Exchange on January 27, 2027.

Strategic Rationale:

The restructuring aims to address conglomerate discount issues and enhance business specialization. This move represents a strategic pivot toward artificial intelligence and core platform operations while separating investment activities.

Business Segments:

*KakaoAI* will concentrate on:

• Artificial Intelligence
• Advertising
• E-commerce
• KakaoTalk chat app platform

*KakaoX* will manage holdings in:

• Fintech
• Content
• Mobility services

Financial Targets and Data:

• KakaoAI 2030 targets: Revenue of 6 trillion won ($4.34 billion) or more with an operating margin exceeding 30%
• KakaoX 2030 target: Revenue of 10 trillion won or more
• 2025 baseline: Kakao reported consolidated revenue of 8.1 trillion won
• The company has pledged 300 billion won toward the restructuring (specific allocation details incomplete in article)

Market Implications:

The separation could unlock shareholder value by reducing the conglomerate discount typically applied to diversified holdings. The aggressive revenue targets suggest significant growth expectations, particularly in AI-driven services. The two-year timeline until relisting provides ample preparation time for the new corporate structure. This restructuring aligns with broader tech industry trends of separating high-growth AI operations from traditional investment portfolios.