Kakao can proceed with its planned absorption merger of Kakao Investment after shareholder opposition reached only about 2% of issued shares, well below South Korea’s 20% threshold for requiring a shareholder vote on a small-scale merger. The transaction is intended to provide independent investment resources for Kakao X after Kakao is split into Kakao AI and Kakao X, a reorganization that still requires a special resolution at an extraordinary shareholders’ meeting on December 17. Kakao Investment will separate its investment business through a physical division, with the surviving Kakao X Investment absorbing IVG before subsequently merging into Kakao X. The merger will not issue new shares, leaving existing Kakao shareholders’ share counts and ownership percentages unchanged. Kakao plans to approve the merger at a November 6 board meeting, with the transaction scheduled to take effect on January 1, 2027.