[Alpha Biz=(Chicago) Reporter Kim Jisun] Kakao will merge with Kakao Space, a real estate development subsidiary.

Kakao announced that it made the decision at the board meeting held on the 7th.

Kakao Space was established in May 2015 as a real estate developer and supplier with a 100% stake in Kakao.

"As it is a merger without capital increase that does not issue new shares, there is no change in stake structure even after the merger," Kakao said in a public announcement. "The synergy effect from the increase in management efficiency and integrated operation of the business is expected."

Kakao's merger with Kakao Space is scheduled for May 2.