Kakao Spins Off Platform Business to Establish KakaoAI, Plans Re-listing by 2027
Nashnova编辑部
South Korea's largest messaging operator Kakao will carve out the KakaoTalk-centred platform business into a standalone company called KakaoAI, keeping the investment-holding arm under a renamed KakaoX — a move aimed at eliminating the conglomerate discount.
What exactly is Kakao splitting?
The KakaoTalk chat platform and related operations will be spun off into a new entity, KakaoAI.
The remaining investment-holding business stays in the parent, which will be renamed KakaoX.
In plain terms = one company becomes two — one runs messaging and AI, the other manages investments.
Why split now?
Kakao stated in its regulatory filing that the restructuring targets the conglomerate discount — the valuation penalty markets impose on mixed-business groups.
This means → Kakao believes the KakaoTalk platform is worth more than the market currently gives it credit for inside the holding structure. A standalone listing lets investors price it directly.
The filing also cited sharper business focus — each entity runs its own operations with dedicated management.
What comes next?
KakaoAI plans to re-list by 2027, giving investors a pure-play bet on the platform business.
This reflects Kakao's confidence that KakaoTalk can command a higher standalone valuation than it gets today inside the group.
For existing shareholders, the key question is whether the two post-split valuations add up to more than today's combined market cap.
Content is for reference only, not financial advice.