Kakao founder Kim Beom-su [Kakao]
Kakao founder Kim Beom-su [Kakao]

Kim Do-young, the incoming chief executive of Kakao X, drew a line against any further governance restructuring and said Kakao founder Kim Beom-su will continue in his role following the company's planned spin-off.

Kim made the remarks Friday at an online press briefing on Kakao's decision to split into two entities through a personal-share division — Kakao AI, a newly established corporation, and Kakao X, the surviving entity.

He denied any plans for additional governance changes, reassured shareholders that the split would not erode shareholder value despite longstanding criticism over Kakao's "duplicate listings," and said the CA Council — an internal body that had coordinated decision-making across affiliates — would no longer be needed.

"There are no plans under consideration for converting Kakao X into a holding company or for any other additional governance restructuring, including mergers," Kim said. "Kakao X will focus on identifying, nurturing and investing in new growth engines, and we will comply with the duplicate-listing guidelines."

On the CA Council, Kim said the body that had served a shared organizational function would no longer be necessary. "After the spin-off, each entity will operate independently in line with its own business objectives," he said, noting that a separate operational council centered on the TalkBiz business and its subsidiaries would remain in place.

Kim also addressed concerns that the spin-off could harm shareholder value, saying both entities would faithfully follow through on the shareholder value enhancement plans they had already disclosed.

"Minimizing the discount is the single most important management goal for Kakao X," he said. "We will ensure that the value we grow through the spin-off translates into shareholder value."

He added that the company's current valuation already reflects a significant discount. "We will work to resolve the combined parent-subsidiary discount and communicate subsidiary-level growth targets to the market to narrow the factors driving that discount," he said. "The virtuous cycle between shareholders and corporate value is critical, and we will move quickly to return improvements in corporate value to shareholders."

Kim also said the founder's role would continue after the split. The spin-off leaves Kim Beom-su's personal stake — and that of K-Cube Holdings, in which he holds a 100 percent interest — unchanged across both entities, so his involvement is expected to carry on as before.

"The founder will serve as both founder and major shareholder in both entities," Kim said. "He will continue supporting growth and services in the same capacity as he does now."


ko@heraldcorp.com