Kakao to Split into Two Entities to Focus on AI Agents
South Korean tech giant Kakao has announced a corporate spin-off into two entities, Kakao AI and Kakao X, to optimize capital allocation for the AI era. Kakao AI will focus on developing AI agents integrated with KakaoTalk and its Kanana AI models, while Kakao X will manage existing subsidiaries like Kakao Bank and SM Entertainment. This restructuring highlights how major tech firms are reorganizing their corporate structures to prioritize agentic AI, aiming to drive user engagement and revenue growth through autonomous services. By integrating AI agents directly into KakaoTalk, Kakao aims to transform its messaging platform into an all-in-one transactional ecosystem. The split ratio by net asset book value is 36% for Kakao AI and 64% for Kakao X, with the restructuring planned to be completed by January 1, 2027. Kakao AI aims to increase user dwell time by over 50% and target an annual revenue growth of 20% to reach 6 trillion KRW by 2030.
## BACKGROUND
KakaoTalk is South Korea's dominant messaging app, serving as a portal for various daily services. Kanana is Kakao's proprietary suite of large language and multimodal models designed for high efficiency. AI agents represent an evolution in AI technology, capable of autonomously executing multi-step tasks like searching, purchasing, and making payments on behalf of users.