Kakao’s planned spin-off will separate KakaoTalk and AI operations from the remaining company, KakaoX, reshaping KakaoX into a future-value investment company. KakaoX will manage stakes in key affiliates and deploy about 6.4 trillion won in investment capacity to support existing units and invest in new businesses and innovative firms. It will focus on areas such as virtual assets, physical AI and global fandom, while returning part of investment gains to shareholders.

Kakao plans to split into newly created KakaoAI and remaining KakaoX, saying management time has been tied up with subsidiaries. A KakaoX CEO nominee said about 85 percent of non-routine board decisions over five years and 84 percent of internal investment reviews over the past year involved subsidiaries, often focused on funding or loans. After the split, KakaoAI will focus on AI services and advertising and commerce, while KakaoX will handle investments and subsidiary support.