Kakao refutes allegations of selling Kakao Entertainment
Kakao Corp. Continues to Explore Strategic Options for Kakao Entertainment
South Korean internet giant Kakao Corp. has announced that it is still considering strategic options for its subsidiary, Kakao Entertainment, with the aim of boosting the company's global presence and business competitiveness.
The statement, made in a regulatory filing, comes after months of speculation about the potential sale of Kakao Entertainment. However, no specific strategic options have been confirmed by Kakao Corp. for the entertainment subsidiary.
Kakao Entertainment is a key player in the web content, music, and talent management industries. The company's goal is to enhance its business competitiveness and global presence.
To achieve this, Kakao Corp. is exploring several strategic moves. One such move involves the expansion of digital infrastructure and AI capabilities. Kakao is building a second large-scale data center in Namyangju, which will serve as a next-generation digital hub supporting high-density AI servers and future technologies. This hub aims to ensure operational stability and scalability across Kakao's services and provide a foundation for AI-based innovations that could enhance Kakao Entertainment’s global content delivery and competitiveness.
Another key strategic move is KakaoBank's advancement of plans to launch a Korean won (KRW)-backed stablecoin by mid-2025. This initiative includes exploring issuance and custody roles within the digital asset ecosystem. By integrating blockchain and stablecoin solutions with robust regulatory compliance (KYC/AML), Kakao aims to innovate around digital payments and services that could complement and globalize its entertainment content monetization models.
Kakao Enterprise has also formed a strategic partnership with Norma, a quantum computing firm, to develop quantum cloud computing services based on Kakao Cloud. This collaboration targets advanced computing capabilities that can solve complex problems, including those in AI and big data analytics frameworks relevant to entertainment business competitiveness, such as content personalization, recommendation engines, and media processing.
While Kakao Corp. has informed shareholders, including Saudi Arabia’s Public Investment Fund (PIF), of its intention to sell management control of Kakao Entertainment, the company has denied rumors about selling its subsidiary. The potential sale of management control has not been confirmed by Kakao Corp., and the review of potential changes to Kakao Entertainment's shareholder structure has been discontinued.
Despite the ongoing speculation, Kakao Corp. continues to explore strategic options for Kakao Entertainment, with the aim of enhancing its business competitiveness and boosting its global presence. The company's multi-faceted approach combines technological infrastructure expansion (AI, cloud, quantum computing), financial innovation (stablecoins, digital assets), and regional-economic integration to support subsidiaries like Kakao Entertainment in scaling and competing on a global stage.
In order to enhance its business competitiveness and boost its global presence, Kakao Corp. is exploring strategic options for Kakao Entertainment, which could potentially involve the advancement of digital payment systems, as KakaoBank plans to launch a Korean won (KRW)-backed stablecoin by mid-2025. Additionally, the company is considering partnerships in finance, such as the collaboration with Norma, a quantum computing firm, to develop quantum cloud computing services, which could provide advanced computing capabilities that are relevant to the entertainment industry.
