The new schedule for the reorganization
According to a report by The Korea Herald, Kakao has postponed the planned corporate spin-off by one month, setting it for February 2027 instead of January. The board of directors approved the revised schedule: the separation into Kakao AI and Kakao X is moving from January 1 to February 1. Consequently, the extraordinary shareholders' meeting will be held on January 15 instead of December 17, while the relisting of Kakao X and the new listing of Kakao AI move from January 27 to February 25.
The company attributes the postponement to the preliminary review for the new listing conducted by the Korea Exchange taking longer than expected. Kakao specified that the schedule could undergo further changes depending on consultations with the competent authorities: this is therefore still a provisional timeline, not a definitive date.
What the separation entails
The plan, announced in August, separates Kakao's core platform and artificial intelligence businesses from its investment activities. The newly created Kakao AI will manage KakaoTalk, advertising, commerce and artificial intelligence services; Kakao X, the company surviving the spin-off, will administer holdings in subsidiaries and investments.
According to the newspaper, the plan has raised concerns among securities firms over the possible holding-company discount applicable to Kakao X and over uncertainty about the profitability of Kakao's artificial intelligence business.
Early buyback and a new balance-sheet equilibrium
To strengthen shareholder confidence, Kakao will begin on Friday a 150 billion won share buyback, earlier than planned. The operation will be financed with cash dividends from Kakao Investment, and all repurchased shares will be cancelled. The move brings forward half of the already announced 300 billion won program, which was initially due to start after the spin-off; the remaining amount will be bought back and cancelled by Kakao X by the end of 2027.
Kakao has also revised the allocation of assets between the two entities, assigning an additional 263.6 billion won to Kakao AI to strengthen its financial position. The adjustment will raise Kakao AI's net assets from approximately 2.9 trillion to 3.2 trillion won; the additional funds will be used to acquire business-related assets, with specific investment plans subject to board approval and other procedures.
As a result of the new allocation and the cancellation of shares, Kakao X's ownership share will fall from about 63.5% to 61.1%, while Kakao AI's will rise from 36.4% to 38.8%. Kakao indicated that the final ratio may be subject to minor adjustments and that the shareholder remuneration policies announced after the spin-off will remain unchanged.
What remains to be verified
The material does not clarify when the Korea Exchange will conclude the preliminary review or which conditions could further change the schedule. It does not indicate the approval timeline for Kakao AI's investment plans, nor the details of the concerns expressed by the securities firms. It therefore remains to be verified whether the new dates will actually be met and what the final impact of the reorganization will be on shareholder value.
