Kakao has cleared the first hurdle for its planned corporate spin-off after shareholder opposition to the merger of surviving entity KakaoX with Kakao Investment remained in the 2 percent range. Under the Commercial Act, a small-scale merger requires shareholder meeting approval if dissenting shareholders hold at least 20 percent of outstanding shares. Kakao can proceed with only a board resolution. The company plans to split into KakaoX and KakaoAI in January.

Kakao is seeking to win over retail shareholders ahead of a planned corporate spinoff into continuing company KakaoX and new unit KakaoAI. KakaoAI aims to begin monetising AI services in 2027 and targets more than 1 trillion won in AI revenue by 2030. KakaoX plans to use gains from selling its stake in Dunamu to buy back and cancel 300 billion won of treasury shares over three years after the split.