Kakao Shares Dive 12% on News of Corporate Split

Kakao's stock price plummeted by 12.53% in early trading on the KOSPI market following the company's announcement of an intended corporate split. The tech giant plans to divide into two distinct entities: Kakao AI and Kakao X.

The news of the demerger sent ripples through the market, impacting not only Kakao's own shares but also those of its affiliated companies. As of 10:49 AM, Kakao was trading at 33,850 won, down 4,850 won from the previous day's close. This significant drop reflects investor concerns about the implications of the restructuring.

Subsidiaries of the Kakao group also saw their stock values decline. Kakao Pay, the company's mobile payment service, fell 7.12% to trade at 41,750 won. Kakao Games, a major mobile game developer and publisher, also experienced a downturn, though specific figures were not detailed in the initial report.

The corporate split, involving the separation of Kakao AI and Kakao X, appears to have unsettled investors, leading to a broad sell-off across the Kakao conglomerate. The market's reaction suggests apprehension regarding the future performance and strategic direction of the newly formed entities and the group as a whole.