Kakao’s labor union is opposing the company’s planned restructuring into KakaoX, focused on investment and portfolio management, and KakaoAI, which will provide artificial-intelligence-based services. The union says Kakao has not adequately explained the split’s necessity, unresolved issues under the current structure or which entities would bear the resulting risks. It is demanding written guarantees covering employee assignments, wages, evaluations, welfare and seniority, as well as protections during future reorganizations and KakaoX’s restructuring of subsidiaries. Kakao set the division ratio at 0.36 for KakaoAI and 0.64 for KakaoX based on net asset book value, with existing shareholders receiving shares in both companies proportionally. The union warned that future listings, capital increases and transactions between the entities could still erode shareholder value and demanded disclosure of the valuation basis and subsequent restructuring plans. It is asking workers and minority shareholders to oppose Kakao Investment’s ongoing absorption merger, targeted for completion on January 1, 2027. Under corporate law, opposition from shareholders holding 20% or more of issued shares would prevent the small-scale merger procedure from proceeding without a shareholders’ meeting. Kakao’s largest shareholder and related parties hold 24.1%, while minority shareholders own about 60%, making their support important for the broader restructuring, which requires a special resolution at an extraordinary shareholders’ meeting in December. Kakao is also scheduled to hold an online briefing for minority shareholders at 4 p.m. on the 16th.