Kakao plans to form the inaugural board of KakaoAI, a new company it will create through a spin-off, with experts in technology, policy and finance. This is seen as an effort to build a board structure that can respond to investment and regulation as it expands its AI business based on KakaoTalk, along with boosting technological competitiveness.

A Kakao company split plan dated Aug. 25 shows KakaoAI's board is set to have 7 members: 2 inside directors, 1 non-executive director and 4 outside directors.

Inside directors will include Kakao CEO Shina Chung (정신아), who has been tapped to lead KakaoAI, and Kakao Chief Financial Officer Jonghwan Shin (신종환). The non-executive director is set to be Jungwhan Shin (신정환), a venture partner at Altos Ventures who previously served as Kakao's chief technology officer.

Outside directors will include former Minister of Science and ICT Hye-sook Lim (임혜숙), former National Tax Service chief Dae-ji Kim (김대지), former KT CTO Seung-pil Oh (오승필) and Korea University professor Young-joon Kim (김영준) of its Graduate School of Management of Technology. Lim has experience in science and technology policy, while Kim has experience in tax and finance. Oh is a technology specialist who has worked at NASA, Microsoft, Yahoo and KT. Kim is a specialist in management of technology and in economics and finance.

Oh was involved in building an AI and cloud strategic partnership worth about 2.4 trillion won with Microsoft during his time at KT. If KakaoAI later cooperates with global big tech companies, it would need to review complex conditions from cloud and computing infrastructure to models, data, intellectual property rights and profit sharing, and Oh's experience is expected to be used in board deliberations.

Among them, Kim, Oh and Kim will also serve on the audit committee. Kakao's placement of figures from policy and finance alongside AI and IT specialists is seen as an effort to strengthen expertise needed for investment and business decision-making as it expands its AI business.

Kakao decided on Aug. 21 to spin off the existing company into KakaoAI and KakaoX. KakaoAI will be run around KakaoTalk and its AI business, while KakaoX will handle stakes in key affiliates as well as investment and mobility businesses.

Through the split, Kakao plans to separate decision-making structures for the KakaoTalk and AI business from investment and affiliate management. KakaoAI plans to focus on investment and service expansion in areas such as AI technology, talent and computing infrastructure.

The split ratio is 0.36 for KakaoAI and 0.64 for KakaoX. Kakao plans to carry out the split on Jan. 1 after winning approval of the split plan at an extraordinary shareholders' meeting on Dec. 17. KakaoAI's relisting and KakaoX's changed listing are scheduled for Jan. 27 next year.