Kakao "Kakao AI to Reach Annual Revenue of 6 Trillion Won by 2030"

[Financial News] Kakao held an online meeting with minority shareholders and announced that its newly established company, Kakao AI, would achieve annual revenue of 6 trillion won by 2030 following the spin-off.
According to industry sources on the 17th, the meeting was held to explain in detail to minority shareholders the background and purpose of the spin-off announced by Kakao on the 21st of last month. It also provided an opportunity to discuss the visions of Kakao AI and Kakao X, as well as plans to enhance corporate value.
Kakao identified securing the speed of execution suited to the AI era and establishing an optimal capital allocation system as the key reasons for the spin-off. The aim is to maximize management efficiency by separating businesses with different characteristics and at different stages of growth. Kakao expects each company to focus on its core growth objectives and deliver results more quickly after the split, allowing the market to assess the value of each business more clearly and fairly.
Kim Do-yeong, nominee for CEO of Kakao X, said, "The purpose of this spin-off is to strengthen the expertise of each business division, thereby making decision-making more efficient and maximizing corporate value through the efficient allocation of resources held by each company. Ultimately, we aim to enhance shareholder value."
Kakao also presented its medium- and long-term growth targets following the split. Kakao AI, the newly established company, aims to achieve annual revenue of 6 trillion won by 2030 by combining KakaoTalk with AI. Kakao X, the surviving company, plans to achieve a 13.3% compound annual growth rate in revenue from its major businesses by 2030 and establish a growth foundation capable of generating more than 10 trillion won in consolidated revenue.
Kakao also emphasized its commitment to shareholder returns. Kakao AI will use 20% to 35% of its adjusted free cash flow (FCF) as the basic source of shareholder returns. If FCF increases by 50% or more from the previous year, the company plans to raise the payout ratio to as much as 40% and actively share the benefits of growth in its core business with shareholders.
Kakao X will use 30% of dividends received from subsidiaries, on an after-tax basis, and 30% of investment gains, after deducting capital costs and taxes, as sources of shareholder returns. It also reaffirmed its plan to use 300 billion won in gains from the sale of Dunamu to buy back and cancel its own shares.
Kakao said, "This meeting was an opportunity to explain the company's changes and future direction directly to our minority shareholders. We will continue to strengthen communication with shareholders and do our utmost to ensure that the market fairly assesses our corporate value."
As of the end of June, the largest shareholder and related parties held 24.1% of Kakao's common shares, while foreign investors held 26.7% and domestic institutions held 10.8%. Individuals and other corporations, excluding foreign investors and domestic institutions, held a 38.2% stake.
[email protected] Jang Min-kwon Reporter