Kakao Corp. plans to separate its Daum portal service into an independent entity, nearly 11 years after the companies merged in a deal that was once hailed as a landmark for South Korea’s technology sector.
The spin-off, announced during an internal town hall meeting on March 13, comes as CEO Jeong Shin-ah recalibrates the company’s business portfolio to focus on core services like artificial intelligence and the KakaoTalk messaging platform.
Yang Joo-il, who currently heads Kakao’s Content Company-in-Company division that oversees Daum, is expected to lead the new entity. The timeline and official name remain under discussion.
Once South Korea’s premier web portal, Daum has seen its search engine market share collapse to just 2.73% in February, according to web analytics firm InternetTrend, making restructuring inevitable.
Industry analysts suggest the spin-off positions Daum for a potential sale, aligning with Jeong’s stated strategy of “streamlining non-core businesses.”
Kakao has promised Daum employees the option to remain with the parent company, as founder Kim Beom-soo steps back from his role as co-chair of the Corporate Alignment Council due to health concerns.
