Kakao’s board decided at an Aug. 21 meeting to split the company through a proportional spinoff into KakaoAI, focused on artificial intelligence, advertising and commerce around KakaoTalk, and KakaoX, the surviving entity. Existing shareholders will receive shares in both companies based on net asset book-value ratios of 0.36 for KakaoAI and 0.64 for KakaoX. Kakao plans to seek shareholder approval on Dec. 17, complete the split on Jan. 1, 2027, and pursue KakaoAI’s relisting and KakaoX’s changed listing status on Jan. 27. KakaoAI, led by current Kakao CEO Shin Jung-a, aims to turn KakaoTalk’s approximately 50 million-user base into an agentic AI interface and generate more than 6 trillion won in revenue by 2030. KakaoX, to be led by Kim Do-young, will support growth at existing core affiliates including KakaoBank, Kakao Pay, Kakao Mobility, Kakao Entertainment and SM Entertainment, while seeking new businesses such as a second Kakao Bank, Kakao Pay and Kakao Mobility and reviewing virtual assets, physical AI and global fandom. KakaoX targets more than 10 trillion won in revenue by 2030.