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

South Korea's dominant chat app ​operator Kakao Corp said ​on Friday it plans to ​spin off its chat app-based platform business into a new company, tentatively named KakaoAI, while retaining investment ‌operations in ⁠a ⁠firm renamed KakaoX.

With this move, the company is ​seeking to address a conglomerate discount and strengthen business ​specialisation, Kakao said in a regulatory filing.

The company expects the new entity to relist ​on the Korea Exchange on ⁠January 27, ‌2027, following a planned ​January 1 ​split.


KakaoAI will focus on AI, ⁠advertising, commerce and the KakaoTalk chat app ​platform, while KakaoX will manage and ​develop holdings in areas including fintech, content and mobility, Kakao said.

Kakao set 2030 targets of 6 trillion won ($4.34 billion) or more in revenue and an operating ‌margin above 30% for KakaoAI, while setting a target of 10 trillion ​won or ​more in ⁠revenue for KakaoX for the same year.

Kakao had reported consolidated revenue of 8.1 trillion won in ​2025, according to the company.

Kakao also pledged 300 billion won of share buybacks and cancellations over three years after the split.

($1 = 1,381.2700 won)