Kakao delays split to February, speeds buyback
Kakao announced a one-month postponement of its planned corporate split, moving the effective date to February 2027 while speeding up a share-buyback program worth 150 billion won to reinforce investor confidence.
The board approved the new timetable on Thursday, shifting the separation of the AI and investment arms from 1 January to 1 February. An extraordinary shareholders meeting will now occur on 15 January, and the relisting dates have been moved to 25 February.
The company said the delay stems from a longer-than-expected preliminary relisting review, and the schedule may be adjusted after further talks with regulators.
The restructuring, outlined in August, will carve out Kakao’s core platform and artificial-intelligence operations into a new entity, while the remaining firm will retain affiliate stakes and investment activities.
Securities analysts have voiced concerns that the split could create a holding-company discount for the investment side and that the profitability of the AI business remains uncertain.
To demonstrate commitment to shareholders, the firm will start repurchasing that amount in shares on Friday, earlier than the original plan. The purchase will be financed by cash dividends from its investment arm, and all acquired shares will be cancelled.
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This move advances half of a previously announced 300 billion won buyback and cancellation program, which was slated to begin after the split. The remaining half is scheduled to be repurchased by the investment side by the end of 2027.
An additional 263.6 billion won has been allocated to the AI unit, boosting its net assets from roughly 2.9 trillion won to about 3.2 trillion won. The funds are earmarked for acquiring assets that support its business lines.
Specific acquisition plans will require board approval and compliance with standard procedures before execution.
Following the revised asset split, the investment side’s ownership share will fall from about 63.5 percent to 61.1 percent, while the AI arm’s stake will rise from 36.4 percent to 38.8 percent. Minor adjustments may still occur.
Post-split shareholder return policies stay unchanged. The unit intends to return 30 percent of after-tax dividends and 30 percent of investment gains after costs and taxes. The AI unit aims to distribute 20 to 35 percent of its adjusted free cash flow, potentially reaching 40 percent if cash flow climbs 50 percent year-over-year.
