South Korean internet company Kakao is collecting shareholder objections to its plan to absorb Kakao Investment before a December shareholder meeting related to its broader corporate split.

The company said the merger could not proceed as a small-scale merger without a shareholder meeting if holders of more than 20% of its issued shares opposed it.

Kakao said the merger is part of a corporate reorganisation after the split.

Under the plan, KakaoAI would run KakaoTalk, advertising, commerce, and AI businesses, while KakaoX would hold subsidiary stakes and oversee investments.

Kakao Investment is Kakao’s corporate venture capital arm, which invests in startups and growth companies.

Kakao’s labor union is urging members and retail shareholders to oppose the deal, publicly questioning its rationale and saying the restructuring could be harmful.

The company’s shares fell about 6% from August 21 to September 17.

The move comes as South Korean policymakers strengthen protections for minority shareholders in spin-offs and similar restructurings.

🔗 Source: Chosun Daily

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