Kakao pledges to preserve jobs, benefits after spinoff

CEO Jung and other executives attend session to share spinoff update

Monthly open chats planned until new entity launches; second shareholder meeting set

Kakao has pledged to maintain all employment terms and working conditions for its staff after next year's corporate spinoff, with leave policies, work arrangements and existing welfare benefits set to carry over to the newly established Kakao AI.

Kakao said Thursday it held an open chat session to address employee questions about the spinoff and share progress updates. The session was the third such communication event, following an open chat held when the spinoff was announced in August and a briefing for performance leaders in September.

CEO Jung Shin-a, Chief Financial Officer Shin Jong-hwan and Chief Technology Officer Song Jae-ha were among the senior executives who attended and outlined the current state of spinoff preparations.

Kakao has set up a task force drawing on key departments including technology, finance and human resources to oversee the practical work involved in the split. The company is also running a dedicated channel where employees can submit questions at any time, and plans to hold monthly open chat sessions until the new entity officially launches.

Jung described the spinoff as more than a simple corporate separation, calling it a fresh start. "Preparing the new company means building the systems of an independent organization, ensuring users can continue using existing services without disruption, and redesigning the structures and standards suited to the new entity," she said. "It is not an easy process, but we are carrying forward what we have built and changing what needs to change."

Employees arrive for work at Kakao's Pangyo Agit office in Seongnam, Gyeonggi Province. [Yun Chang-bin]

The question-and-answer portion of the session focused on employment and working conditions, the issues of greatest concern to staff.

Kakao said all employment and working conditions for every employee will be comprehensively transferred to Kakao AI as the rights and obligations tied to its existing business move to the new entity. Leave policies, work arrangements and office environments will be preserved, as will current welfare benefits and perks including an on-site childcare center, employee loans, a company cafeteria and resort facilities.

Kakao said it is pursuing the spinoff to establish a capital allocation framework suited to the AI era. The company plans to complete the split on Jan. 1 after an extraordinary shareholders' meeting on Dec. 17, and will proceed with Kakao AI's relisting and Kakao X's transfer listing on Jan. 27.

Kakao has also been keeping shareholders and analysts informed. It held a retail shareholder meeting in September and hosted a joint analyst briefing at its if(kakao)26 developer conference on Tuesday, attended by CEOs of major affiliates. A second retail shareholder meeting is scheduled for Oct. 20, at which the company will take questions about the spinoff.

chami@heraldcorp.com