South Korea’s Kakao, the operator of KakaoTalk, said on August 21 that it will split into AI-focused KakaoAI and investment-focused KakaoX through a human resources split.

It said the move would narrow the gap between its market value and the combined value of its subsidiaries.

The split ratio, based on net asset book value, will be 0.36 for KakaoAI and 0.64 for KakaoX. Existing shareholders will receive shares in both companies.

The plan will take effect on January 1, 2027, if shareholders approve it at a special meeting on December 17, 2026. The two companies are scheduled to relist or change their listings on January 27, 2027.

Kakao said domestic and international securities firms value its businesses at 34.2 trillion won (US$24.6 billion) on a sum-of-the-parts basis.  That compared with its average market capitalization of 16.8 trillion won (US$12.1 billion) over the past three months.

Kakao shares fell 11% to 33,850 won (US$24) by after the announcement.

Kakao said its current CEO Chung Shin-a will lead KakaoAI, while Kim Do-yeong, CEO of KakaoInvestment and head of the CA Council’s Group Investment Strategy Office, will lead KakaoX.

🔗 Source: Chosun Daily

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