Kakao CEO Chung Shin-a and Kim Do-young, nominee for CEO of KakaoX, will visit Hong Kong and Singapore on Nov. 11 and 12 to hold investor relations meetings with more than 10 overseas investors and institutional investors.
Kakao said Wednesday that the meetings will focus on explaining the background and objectives of its planned corporate spin-off, as well as the roles and growth strategies of Kakao AI and KakaoX after the split. The company also plans to listen to investors' concerns and opinions to build broader support for the restructuring.
When Kakao announced the spin-off in August, it said the move would establish specialized decision-making systems and capital allocation structures tailored to the different characteristics of each business, accelerating growth and enhancing corporate and shareholder value.
Following the split, Kakao AI will focus on AI businesses that organically connect artificial intelligence, advertising and commerce, centered on KakaoTalk. KakaoX will support the growth of key businesses, including tech finance, content and mobility, while identifying new growth drivers.
Since announcing the plan, Kakao has held a series of meetings to explain the rationale and growth strategy to various stakeholders. It held two meetings with minority shareholders in September and October, directly answering their questions. It also shared the businesses' mid- to long-term growth plans at a joint analyst meeting attended by executives from major affiliates.
At the second shareholder meeting in October, Kakao expanded participation options to include both online and offline attendance and focused on answering shareholders' key questions.
Alongside the spin-off, Kakao is accelerating efforts to enhance shareholder value. The company has decided to execute 150 billion won of a planned 300 billion won share buyback and cancellation program ahead of the split. The program was originally scheduled to be carried out by KakaoX after the restructuring.
By bringing forward half of the planned shareholder return program, Kakao aims to demonstrate its commitment to enhancing corporate and shareholder value. KakaoX plans to carry out the remaining 150 billion won buyback and cancellation after the split, within next year.
A Kakao official said the meetings would provide an opportunity to hear directly about overseas investors' questions and market views.
"We will faithfully reflect the various opinions gathered during the meetings in our future communications with the market and actively create opportunities for investors to track the growth strategies and performance of both companies," the official said.
in TECH
