[Edaily KIM HYE-SEON Reporter] “If you take KakaoTalk away from Kakao, what’s left?”
“What is Kakao X? Do you think it’s SpaceX?”
“This is good news, not bad news. Please check the disclosure carefully.”

Retail investors are abuzz as Kakao has decided to spin off its core businesses—KakaoTalk and artificial intelligence (AI)—into separate companies. Compounded by the “learning effect” from Kakao’s history of successively spinning off and listing its affiliates, stock discussion forums are seeing a clash between complaints asking, “Another spin-off?” and counterarguments stating, “This time it’s a spin-off by division of shares, so it’s different.”
On the 21st, Kakao announced in a regulatory filing that it would establish “Kakao AI” through a spin-off, a company responsible for advertising, commerce, and AI businesses centered around KakaoTalk. The existing Kakao entity will be renamed “Kakao X” and will manage investment assets such as Kakao Mobility, Kakao Bank, and Kakao Entertainment.
The split ratio is 0.36 for Kakao AI and 0.64 for Kakao X. The newly established Kakao AI plans to pursue a relisting on the KOSPI.
The key to understanding this spin-off lies in the fact that it is a “spin-off by division of assets.” The current Kakao will be split into two entities while maintaining shareholders’ equity proportions, and existing Kakao shareholders will receive shares in both Kakao AI and Kakao X following the spin-off. This means the company is not simply taking KakaoTalk away and leaving existing shareholders with only Kakao X, an investment company. From the shareholders’ perspective, “one Kakao share” will become two separate stocks: “Kakao AI” and “Kakao X.”
However, shareholder reactions have been lukewarm. In Kakao stock discussion forums, comments such as “This is blatantly stabbing shareholders who’ve held shares for over five years in the back,” “Another spin-off? AI? This company is truly insane.” There were also heated reactions such as, “How can they split up this worthless stock again?” and “What’s left if Kakao separates KakaoTalk?” Some even made a self-deprecating remark, comparing Kakao’s subsidiaries to “a menu at a Korean snack bar,” saying, “Soon there will be more companies than items on a gimbap shop’s menu.”
There are also opposing views. Some investors emphasized that this spin-off is different from Kakao’s past spin-offs of subsidiaries, stating, “This is good news—just read the disclosure carefully,” and “It’s not bad news.”
In fact, looking solely at the spin-off itself, the structure does not immediately reduce existing shareholders’ stakes. The key question is how much value the market will assign to the two companies after the split.
Kakao AI, by combining KakaoTalk, AI, advertising, and commerce into a single company, has the potential to be recognized for its independent corporate value as a growth company. Another advantage is that the simplified business structure makes it easier for investors to evaluate the company’s performance and growth potential.
On the other hand, Kakao X will lose its core service, KakaoTalk, and take on a stronger character as an investment company holding stakes in mobility, financial, and content firms. A concern is that in the domestic stock market, such investment and holding companies often trade at prices below their net asset value—a phenomenon known as the “holding company discount.”
Ultimately, shareholder value following the split is expected to hinge on the extent to which the “AI premium” enjoyed by Kakao AI offsets the “investment company discount” that Kakao X may face.
The stock market is taking a cautious stance for now. Kakao saw a surge in selling pressure even before the official announcement, trading at 35,900 won as of 10:07 a.m.—down 7.24% from the previous trading day. Following the announcement of the spin-off decision, the Korea Exchange temporarily suspended trading of Kakao shares from 10:04 a.m. to 10:34 a.m.