Kakao (035720) held an internal briefing to answer employee questions and share progress on its planned spinoff, reaffirming that existing employment terms, working conditions and benefits will carry over unchanged.
The company said on the 16th that it held an "Open Talk" session on the 15th to explain matters related to the spinoff. It was the third such communication event, following an Open Talk held in August when the spinoff was first announced and a briefing for performance leaders in September.
Senior executives including CEO Chung Shin-a, Chief Financial Officer Shin Jong-hwan and Chief Technology Officer Song Jae-ha attended the session to explain preparations and key tasks for the spinoff.
Kakao has set up a task force involving its technology, finance and human resources units to review the practical work required for the split. It also runs a separate channel where employees can submit questions at any time. The company plans to continue holding Open Talk sessions every month until the new entity launches.
Chung said the spinoff is more than a corporate separation and amounts to preparing a fresh start.
"Preparing the new entity means building the framework of an independent company and making sure users can continue using existing services without inconvenience, while at the same time redesigning the structure and standards that fit a new company," Chung said. "It is not an easy process, but we are making what we have built more solid and changing what needs to change."
In the question-and-answer session that followed, the company addressed employment and working conditions, the main concerns among staff. Kakao said all employees will have their employment and working conditions transferred in full as rights and obligations tied to the existing business move to the new entity, Kakao AI.
As a result, existing working conditions such as leave and work arrangements, as well as the work environment including offices, will be maintained. Benefits such as the company daycare center, loans, the in-house cafeteria "Chunsik Dorak" and recreational facilities will also remain in place.
Kakao is pursuing the spinoff to build decision-making speed and a capital allocation system suited to the artificial intelligence era. It plans to hold an extraordinary shareholders meeting on Dec. 17, complete the split on Jan. 1 next year, and proceed with the relisting of Kakao AI and the modified listing of Kakao X on Jan. 27. Detailed schedules may change depending on consultations with relevant authorities and related procedures.
The company is also stepping up communication with shareholders and market participants. After holding a meeting with minority shareholders in September, it held a joint analyst briefing on the 13th at "if(kakao) 26," attended by chief executives of major affiliates. A second meeting with minority shareholders is scheduled for the 20th to answer shareholder questions about the spinoff.