South Korean internet company Kakao has approved a split to establish KakaoAI and keep KakaoX as the surviving entity. According to Odaily, existing shareholders will receive shares in both companies based on a 0.36-to-0.64 ratio of net asset book value.

KakaoAI will focus on AI businesses centered on KakaoTalk, which has about 50 million users, and aims to turn the app into an agentic AI interface linking AI, advertising, and e-commerce. The company plans to exceed 20 million daily AI users by 2030, raise platform engagement by more than 50%, and generate annual revenue of 6 trillion won. Current Kakao CEO Jung Shin-a is expected to serve as representative.

KakaoX will oversee the development of core subsidiaries including KakaoBank, KakaoPay, Kakao Mobility, and Kakao Entertainment, while also pursuing new business opportunities and investments in innovative companies. It plans to use about 2.3 trillion won from asset monetization and about 4.1 trillion won in investment funds held by subsidiaries, with a goal of more than 10 trillion won in revenue by 2030.

KakaoAI plans to allocate 20% to 35% of adjusted free cash flow to shareholder returns, while KakaoX plans to use 30% of subsidiary dividends and investment income for the same purpose. Kakao will hold an extraordinary shareholders' meeting on December 17, complete the split on January 1, 2027, and push for KakaoAI's relisting and KakaoX's listing change on January 27.