Kakao splits into AI-focused company

South Korean tech giant Kakao announced it will split into two companies: a new AI-focused firm, Kakao AI, and the remaining Kakao X. The split ratio is 36% for Kakao AI and 64% for Kakao X, based on net asset value. Kakao AI will focus on developing AI agents, with KakaoTalk and Kanana at its core. Users will be able to give commands via the chat app to perform tasks like searching, buying, and paying. The goal is to increase user engagement by over 50% and reach annual revenue of 6 trillion won (about $291 million) by 2030. Kakao X will manage existing subsidiaries like Kakao Bank, Kakao Pay, and SM Entertainment, and explore new ventures such as virtual assets. A shareholder meeting is set for December 17, with the split completed by January 1, 2027, and Kakao AI to be relisted later.