# Kakao corporate restructuring and AI spin-off > Live situation record from CLSTR: https://clstr.news/situations/kakao-corporate-restructuring-and-ai-spin-off > Updated: 2026-10-16T01:58:57.000Z. Sources: 5. Developments: 2. Kakao is proceeding with a corporate restructuring plan to spin off an artificial intelligence entity, tentatively named ‘Kakao AI’. In September, the company cleared a significant regulatory hurdle when shareholder opposition to the merger between Kakao X and Kakao Investment remained below the 20% threshold required to force a general shareholder meeting. This merger is intended to consolidate approximately 2.3 trillion won in assets to fund the new AI-focused services. Following this development, Kakao executives addressed internal concerns regarding the transition. During an ‘Open Talk’ event, management pledged to maintain 100% of existing employment conditions and welfare benefits, ensuring that all rights and obligations are transferred to the new entity. The restructuring process is being managed by a dedicated task force. A final decision is expected at an extraordinary shareholders' meeting on December 17, with the spin-off scheduled for completion on January 1, 2027. The relisting of Kakao AI is planned for January 27, 2027. ## Timeline ### 2026-10-16: Kakao pledges full employment and welfare succession for AI spin-off Kakao executives have guaranteed that all employment terms and welfare benefits will be fully transferred to the new spin-off entity, Kakao AI, to ensure job security during the restructuring. 2 sources. https://clstr.news/cluster/kakao-pledges-full-employment-and-welfare-succession-for-ai-spin-off ### 2026-09-22: Kakao clears first hurdle for spin-off into AI and investment entities Kakao's plan to spin off into Kakao AI and Kakao X is proceeding as scheduled after shareholder opposition to its subsidiary merger remained below the 20% threshold, staying at approximately 2%. 3 sources. https://clstr.news/cluster/kakao-clears-first-hurdle-for-spin-off-into-ai-and-investment-entities --- Cite as: Kakao corporate restructuring and AI spin-off. CLSTR, https://clstr.news/situations/kakao-corporate-restructuring-and-ai-spin-off