Kakao confirmed the reappointment of CEO Chung Shin-a through 2028 at its annual general meeting on Thursday, as the company pivots to artificial intelligence-led growth following restructuring.
“The restructuring process is largely nearing completion,” Chung said at the shareholders meeting held at the company’s headquarters on Jeju Island. “This year, we will move beyond that and focus on growth centered on AI and KakaoTalk.”
Chung was first named CEO in December 2023 while serving as head of Kakao Ventures and was formally appointed at a shareholders meeting in March the following year.
Kakao posted record results last year, with consolidated revenue reaching 8.1 trillion won ($5.39 billion) and operating profit at 732 billion won.
“We will enter a full-fledged growth phase starting this year,” she said, setting a target of more than 10 percent revenue growth and a 10 percent operating margin.
The company plans to roll out AI agents within KakaoTalk designed to understand user context and carry out tasks, while expanding participation from external partners through its Play MCP platform and agent builder tools.
“Through AI, we will innovate user experience and connect services more seamlessly around KakaoTalk,” Chung said.
Shareholders also approved a plan to increase total dividends for fiscal 2025 by 10 percent from a year earlier, along with the cancellation of more than half of the company’s treasury shares.
The Thursday meeting saw questions from investors over the company’s recent share price weakness and calls for stronger shareholder returns.
“I feel a heavy sense of responsibility for the share price performance,” Chung said, adding that the company will focus on improving earnings while developing business models tied to its AI strategy.
On potential additional divestments, Chung said any sales would prioritize job stability and long-term cooperation.
“Even if we proceed with divestments, we will do so in a way that protects employment and allows continued collaboration as partners,” she said.
Kakao is moving to transfer control of AXZ, the operator of its portal Daum, to local AI startup Upstage, and to divest its stake in Kakao Games to an entity backed by Japan’s LY Corp.
“Both AXZ and Kakao Games share the goal of becoming strong companies,” Chung said. “We will focus on building partnerships that create synergy rather than undermine stability.”
By Jie Ye-eun (yeeun@heraldcorp.com)
