Kakao has begun work to restructure its group governance. Kakao will hold a town hall meeting for employees called "Open Talk" at 10 a.m. on Aug. 21 and explain the direction of the governance overhaul. The company is expected to disclose the revamp details to coincide with the Open Talk, reports say. Kakao has not officially released specific agenda items. Market attention is focused on whether the KakaoTalk business will be separated.

In the industry, a plan to convert Kakao's headquarters into a holding company is being widely discussed. A holding company is a firm that manages a group by holding shares in subsidiaries instead of directly running businesses. Under this structure, the business that operates KakaoTalk would be spun off into a separate entity. A plan to establish a new entity to handle the artificial intelligence (AI) business is also being mentioned.

On anonymous chat apps such as "Blind", some have also argued that governance at the finance and content affiliates could be included in the restructuring. Kakao, however, did not provide a separate position on the scope and schedule of the overhaul. Kakao is listed on the main stock market, and the restructuring details are subject to disclosure.

As the possibility of a restructuring became known, the labour union also began an official response. In a notice to members, the Kakao union said, "We expect there will be an announcement related to Kakao's announcement of a corporate split," adding, "Because management has not responded despite requests for official confirmation, we are preparing response plans by scenario." The union plans to decide the level of its response depending on management's announcement.

The union will hold an Open Talk for members on Aug. 24, centred on entities being discussed as potential targets of a split. It is also reviewing a plan to take collective action on Aug. 26. Employees are also closely watching the town hall meeting on the day. If Kakao discloses the overhaul plan, the entities targeted for a split and the implementation schedule are expected to become clearer.