[Alpha Biz= Kim Jisun] Kakao is expediting the spin-off of its portal service Daum, signaling a structural shift toward an independent corporate entity 11 years after its merger with Daum Communications in 2014.
According to the ICT industry on May 18, Kakao plans to complete the transformation of Daum into a company-in-company (CIC) structure within this month, followed by full-scale spin-off procedures. The company is currently finalizing employee consent for internal transfers, with most organizational alignment already in its final stages.
Kakao aims to hold a board meeting as early as the first half of this year to formally approve the spin-off and complete the legal separation by year-end.
Although Kakao initially transitioned Daum into a CIC in May 2023 to allow limited autonomy, internal assessments indicated structural limitations to Daum’s growth as a unit within Kakao. This prompted a strategic pivot toward full independence.
At the company’s annual shareholder meeting in March, Kakao CEO Shin Ji-eun stated, “Daum cannot grow effectively under the current structure. An independent management system that allows for autonomous experimentation is essential.”
Once a major portal rival to Naver, Daum has seen a steady decline in market share over recent years. As of May 16, according to Internet Trend data, domestic search engine market share stood at: Naver 60.3%, Google 31.6%, ZUM 3.4%, and Daum at just 3.07%.
Kakao’s decision reflects its intent to revitalize Daum through a more agile and focused governance structure, potentially paving the way for new growth opportunities in the competitive portal and search landscape.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
