Kakao Decides to Absorb Subsidiary Daum Global Holdings Through Merger

Kakao will absorb and merge its wholly owned subsidiary, Daum Global Holdings.

On the 10th, Kakao announced that it will hold a board meeting on the 14th of next month to promote the merger of Daum Global Holdings. The merger date is set for December 17.

Kakao owns 100% of the shares of Daum Global Holdings. Accordingly, a non-capital increase merger without issuing new shares will proceed.

Kakao explained that the main business of Daum Global Holdings is the control and management of companies related to Kakao, and the purpose of the merger is to "enhance corporate value through simplification of the governance structure."

This merger decision is interpreted as part of Kakao Group's effort to reduce the number of affiliates. Earlier in August, Jeong Sin-ah, CEO of Kakao, stated, "We define businesses that lack relevance to the KakaoTalk platform or the major trend of AI as non-core, and we intend to accelerate efficiency improvements for those businesses in the second half of the year."