KAKAO SPINS OFF CHAT PLATFORM INTO KAKAOAI

South Korea's dominant messaging platform operator announced the spinoff on Friday as part of a broader restructuring strategy. The new entity, KakaoAI, will operate Kakao's chat app services and related platform businesses independently. The company expects to complete the separation and return to public markets within three years. The move allows Kakao to streamline operations and create a focused business unit around its core messaging and AI-driven platform services. Kakao has faced competitive pressures and regulatory scrutiny in recent years. The spinoff strategy positions the chat platform business as a standalone investment opportunity while Kakao retains other assets including financial services, logistics, and entertainment divisions. Details on the separation timeline, ownership structure, and financial terms remain limited. The 2027 relisting target suggests a multi-year process for regulatory approval and operational restructuring.