Korean internet giant Kakao announced on August 21 that its board of directors has approved a spin-off plan, aiming to establish a new company "Kakao AI" to focus on KakaoTalk and artificial intelligence (AI) business; the existing company will retain and be renamed "Kakao X", focusing on investment, fintech, content, and mobility businesses. Kakao stated that this restructuring aims to establish independent operating systems for the two businesses, accelerate the implementation of the AI strategy, and improve capital allocation efficiency.

According to the plan, the two companies will be split in a ratio of 36% and 64% based on their net asset book value, with existing shareholders receiving shares of both companies in proportion to their holdings. After the split, Kakao AI will be positioned as the "AI core company," focusing on promoting AI business by leveraging KakaoTalk, which has about 50 million users. The company plans to upgrade KakaoTalk from a traditional instant messaging tool into an "AI interface with intelligent agents" capable of understanding user intent and conversation context, connecting services such as search, recommendation, shopping, and payment through AI agents.

In terms of timeline, Kakao plans to hold a special general meeting of shareholders on December 17, 2026, and complete the company split on January 1, 2027; following this, it plans to re-list Kakao AI on January 27, 2027, while completing the listing change for Kakao X. Specific dates may still be adjusted according to negotiations with regulatory authorities and related procedures.

This spin-off signifies that Kakao is elevating AI from an important component of the group's business to an independent growth engine, attempting to leverage KakaoTalk's large user base to upgrade AI from a function within a chat tool into a smart entry point connecting daily services.