KaKao

- Q&A-focused meeting features 90 minutes of direct responses to shareholder questions to build mutual understanding

- Hybrid format expands participation opportunities, with Kakao actively listening to shareholder views on the spin-off

- Kakao to further strengthen stakeholder communication through the spin-off and continue efforts to enhance shareholder value

 

[October 20, 2026] Kakao announced that it held its second meeting with retail shareholders at the FKI Tower Conference Center in Yeouido, Seoul.

 

The meeting was held both online and in person, with key executives in attendance, including Doyoung Kim, CEO-designate of Kakao X. They exchanged views with retail shareholders on topics including the rationale for the spin-off, post-spin-off growth strategies, and plans to enhance corporate and shareholder value.

 

The meeting centered on a question-and-answer session. Kakao executives provided specific, candid answers to a wide range of shareholder questions over 90 minutes. Particular emphasis was placed on building greater understanding and support for post-spin-off growth strategies and plans to enhance shareholder value. Unlike the first meeting, which was held exclusively online, the second meeting adopted a hybrid format to broaden opportunities for shareholder engagement.

 

During the meeting, shareholders asked whether Kakao X could be undervalued by the market due to its subsidiary-centered business structure. Kakao explained that, following the spin-off, it would disclose detailed performance results and growth strategies for each major business, including techfin, content, and mobility, to ensure market valuations adequately reflect each business’s value. The company also said it would work to narrow the gap between net asset value and market valuation.

 

Shareholders also asked why the spin-off was necessary. The company explained that there were limits to its ability to focus on AI, KakaoTalk, advertising, and commerce while also pursuing growth and investment across its major affiliates within a single decision-making structure. Given the need for structural changes to respond to rapid developments in the AI industry, Kakao emphasized that the spin-off would strengthen each business’s expertise, speed up decision-making, and enhance corporate and shareholder value.

 

Another question concerned shareholder returns following the spin-off. Kakao explained that Kakao X would allocate 30% of dividends received from its subsidiaries and 30% of investment gains toward shareholder returns. Kakao X also plans to repurchase and cancel KRW 300 billion worth of its own shares following the spin-off. Kakao AI also reaffirmed its plan to allocate 20–35% of its adjusted standalone free cash flow (FCF) to shareholder returns. If FCF increases by 50% or more year over year, the shareholder return ratio will be raised to as much as 40%.

 

Doyoung Kim, CEO-designate of Kakao X, stated, “A key objective of this restructuring is to enhance corporate and shareholder value through the spin-off. While executing our growth strategies swiftly, we will do our utmost to build trust by fully explaining the rationale behind the spin-off and our future growth strategies to shareholders and listening carefully to their views.”

 

Kakao plans to continue expanding engagement opportunities to build greater understanding and support among market participants and shareholders for the spin-off. In addition to its first and second meetings with retail shareholders, Kakao also hosted a group-wide analyst meeting on October 13, attended by the CEOs of its major affiliates, where it shared detailed post-spin-off growth plans for each business. (E.O.D.)