연합뉴스5 minutes agoBusiness2 min readSouth Korea

Kakao purchases 150 billion won worth of shares... “Improve shareholder value”

Quick Look

Kakao decided to purchase and cancel 150 billion won worth of treasury stocks to improve shareholder value.
CEO Chung Shin-ah acknowledged that the speed of expansion of AI services did not meet market expectations and announced that she would focus all resources on AI business.

AI-generated summary

Why It Matters

In a conference call announcing its third quarter earnings, Kakao announced a large-scale shareholder return measure to improve shareholder value, stating that there is a large gap between the market's current evaluation and internal future growth potential in the transition period of governance structure.

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Kakao [035720] decided to purchase and cancel treasury stocks worth 150 billion won to improve shareholder value.

Kakao CEO Chung Shin-ah said this in a conference call announcing third quarter earnings on the 5th, saying that there is a large gap between the current evaluation of the market in the transition period of governance structure and the future growth potential viewed internally.

CEO Jeong explained, “We humbly accept that the speed of expansion of artificial intelligence (AI) services this year did not meet market expectations.”

He then emphasized that along with this large-scale shareholder return, he will focus all of the company's resources on quickly introducing AI services that exceed market expectations.

Kakao plans to expand its AI business at a faster pace in the future to meet shareholder expectations through actual business performance and improved corporate value.

What to Watch

AI outlook — possibilities, not facts

Kakao will quickly launch AI services
Likely · Within months

Open Questions

What is the specific schedule for purchasing and canceling treasury stock?
What is the specific release schedule for AI services?
What happens to the total number of issued shares after cancellation?