First Spin-Off in Two Years Since CIC Transition...
Kakao to Establish Wholly-Owned Subsidiary
Business Transfer Procedures to Be Completed by Year-End
Kakao announced on May 22 that it will separate the portal 'Daum' business unit into an independent corporation.
On the morning of the same day, Kakao held a board meeting and resolved to spin off the content in-house company (CIC), announcing the establishment of a new corporation called 'Daum Preparation New Corporation.' Yang Ju-il, the current head of the Content CIC, has been appointed as the CEO of the new corporation.
This marks the first time in approximately two years since the Daum business unit was reorganized into a CIC structure in May 2023 that it will become an independent corporation. The new corporation will operate as a wholly-owned subsidiary, with Kakao holding 100% of its shares.
Through the spin-off, the new corporation plans to establish an independent management system and pursue enhanced business efficiency and competitiveness. Based on Daum's core assets such as short-form content, media, and community, the company aims to experiment with new business models. At the same time, it intends to continue generating synergies with its parent company Kakao in the fields of artificial intelligence (AI) and content.
The business areas to be transferred to the new corporation include all Daum-related services currently managed by the Content CIC, such as Daum Mail, Daum Cafe, Daum Search, Daum News, and Daum Shopping. For the time being, the new corporation will operate these services on a consignment basis, with the transfer of business operations expected to be completed by the end of this year.
The new corporation is also actively seeking to recruit talent to strengthen organizational capabilities. The plan is to enhance business competitiveness by securing outstanding personnel in key areas such as planning, development, infrastructure, and security.
Yang, the designated CEO, stated, "We have taken the first step toward creating an environment that can respond quickly to intensifying market competition," adding, "Under a faster and more flexible decision-making structure, we will focus on new experiments and challenges to provide Daum portal with an opportunity for renewed growth."
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