[Edaily Reporter Lee So-Hyun ] Kakao(035720)is once again seeking to win over minority shareholders ahead of its spin-off into the artificial intelligence (AI) business unit “Kakao AI” and the investment firm “Kakao X.” Following an online briefing last month, the company has organized an in-person meeting with minority shareholders—its first such event in about a month. This move aims to enhance shareholders’ understanding of the corporate governance restructuring ahead of the extraordinary general meeting scheduled for December 17 to approve the spin-off.

On the 8th, Kakao announced that it will hold a meeting with minority shareholders at 2:00 p.m. on the 20th at the Bulls Hall of the Korea Financial Investment Association in Yeouido, Seoul. The event will combine an in-person session with a conference call to explain key details regarding the corporate restructuring, followed by a question-and-answer session. The link for online participation will be posted on the company’s website at a later date.

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Minority Shareholders Again After Just One Month… First Meeting Criticized for “Lack of Communication”

This is the second time Kakao has held a separate meeting for minority shareholders, following the one on the 16th of last month. At that time, Kim Do-young, CEO-designate of Kakao X, and Shin Jong-hwan, Chief Financial Officer (CFO), among others, explained the split ratio, shareholder returns, the potential discount on Kakao X’s enterprise value, and plans for collaboration among affiliates following the split.

In particular, they spent a significant amount of time addressing shareholders’ concerns stemming from confusion between an asset spin-off and a stock spin-off. They emphasized that this differs from an asset spin-off—where the parent company retains shares of the newly established company—noting that a shareholder holding 100 Kakao shares would receive approximately 64 shares of Kakao X and 36 shares of Kakao AI, based on the planned split ratio. He explained that since the largest shareholder would also receive shares in both companies at the same ratio, this structure would not result in an increase in their ownership stake, and that there were no plans for a capital increase through in-kind contributions or a transition to a holding company structure.

However, criticism was raised regarding the communication approach following the briefing. The Kakao Labor Union pointed out that, of the 16 questions the company answered at the time, 14 were pre-prepared, while actual questions from shareholders on-site amounted to only two, lasting about six minutes. They also took issue with the fact that attendees could not turn on their microphones to ask questions directly and demanded an additional public briefing attended by responsible executives, including CEO Jeong Shin-ah.

Following these criticisms, Kakao is meeting with minority shareholders again after about a month. Unlike the first event, which was primarily online, this time the company will hold an in-person meeting on the 20th, accompanied by a conference call. This appears to be an effort to further strengthen direct communication with shareholders ahead of the extraordinary general meeting scheduled for December 17 to approve the corporate spin-off.

This second meeting with minority shareholders is expected to serve as an opportunity to directly hear and address any remaining questions shareholders may have following the company’s previous explanations.

Kakao is proceeding with a schedule to obtain approval for its spin-off plan at the extraordinary general meeting on December 17, split into Kakao X and Kakao AI on January 1 of next year, and complete the respective delisting and relisting on the 27th of the same month.

Kakao Reveals ‘10 Trillion Won Kakao X’ Growth Formula to Analysts

Prior to the meeting with minority shareholders, Kakao will hold a separate briefing for securities firm analysts on the 13th. At the AI Campus—where the opening ceremony for the Kakao Developer Conference “If Kakao” will take place—the company will announce the medium- to long-term growth plans for its major subsidiaries following the spin-off, along with a Q&A session on its AI strategy and direction.

When Kakao announced the spin-off, it set a goal of growing the revenue of major businesses under Kakao X to over 10 trillion won by 2030 and achieving over 6 trillion won for Kakao AI. The key point of interest this time is whether core subsidiaries—including fintech companies like KakaoBank Corp. and kakaopay; content companies such as Kakao Entertainment, SM Entertainment, and Piccoma; and Kakao Mobility—will present more specific figures and strategies on how they plan to meet these targets.

As Kakao meets with analysts and minority shareholders in quick succession—at one-week intervals—the company is expected to enter a full-scale campaign to persuade the market and shareholders ahead of the general shareholders’ meeting on the organizational split scheduled for December.