[Alpha Biz= Reporter Kim Sangjin] Kakao has announced its decision to absorb and merge its wholly-owned subsidiary, Daum Global Holdings.

On October 10, Kakao revealed that it will hold a board meeting on November 14 to discuss the merger plans, with the merger date set for December 17.

Kakao owns 100% of Daum Global Holdings, and the merger will proceed as a non-capital increase transaction, meaning no new shares will be issued.

Kakao stated that Daum Global Holdings primarily engages in the governance and management of companies related to Kakao, emphasizing that the purpose of the merger is to "enhance corporate value through simplified governance structures."

This merger decision is seen as part of Kakao Group's initiative to streamline its subsidiaries. In August, Kakao CEO Sung Jin-hwa mentioned that the company would define businesses lacking significant relevance to the KakaoTalk platform or the major trend of AI as non-core, and would work to enhance efficiency in those areas in a timely manner during the second half of the year.

 

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