Kakao Corp. CEO Shina Chung heads to Hong Kong and Singapore to explain spin-off

[Financial News] Kakao Corp. is stepping up its outreach to overseas investors ahead of its spin-off. CEO Shina Chung will personally visit Hong Kong and Singapore to explain growth strategies for each business and plans to enhance corporate value after the spin-off. The move aims to build market confidence in the spin-off by expanding engagement beyond domestic minority shareholders and the securities industry to overseas institutional investors.
According to industry sources on the 11th, Chung and Kim Do-young, the CEO nominee of Kakao X, will hold investor relations (IR) meetings for around 10 overseas investors and institutions in Hong Kong and Singapore from the 11th through the 12th.
At the IR meetings, they will explain the background and purpose of the spin-off, as well as the roles and growth strategies of Kakao AI and Kakao X after the split. They will also hear the main concerns and views of overseas investors.
Kakao Corp. announced its spin-off plan last August. The aim is to establish decision-making systems and capital allocation structures suited to each business, accelerate the growth of each business, and enhance corporate and shareholder value.
After the spin-off, Kakao AI will focus on businesses that link artificial intelligence (AI), advertising and commerce, centered on KakaoTalk. Kakao X will support the growth of key businesses such as techfin, content and mobility, and will be responsible for identifying future growth drivers.
Since announcing the spin-off, Kakao Corp. has continued its outreach to help shareholders and the market understand the plan. It held two meetings with minority shareholders in September and October, and explained its medium- to long-term business plans after the spin-off at a joint analyst meeting attended by executives from major affiliates. In particular, the second meeting with minority shareholders last month was held both online and in person, with executives answering shareholders’ questions directly.
Kakao Corp. is also bringing forward part of its shareholder-return plan. Of the 300 billion won in share buybacks and cancellations that Kakao X had originally planned to carry out after the spin-off, 150 billion won will be executed early, before the split. Kakao X is scheduled to buy back and cancel the remaining 150 billion won during 2027, after the spin-off.
A Kakao Corp. official said, “We expect this meeting will allow us to directly gauge what overseas investors want to know and how the market views the matter,” adding, “We will faithfully reflect the diverse views we hear on the ground in our future communications with the market, and will actively create opportunities for investors to keep track of the growth strategies and performance of both companies.”
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