Kakao Divests Contents CIC, Launches New Innovation Firm

Kakao has made a significant decision for the innovation and re-leap of its portal 'Daum'. It officially established 'Daum Preparatory New Corporation' (다음준비신설법인) as a 100% subsidiary by spinning off its existing Content CIC, and Yang Ju-il, the current CEO of Content CIC, has been appointed as its head, set to lead Daum into a new era. This spin-off marks Daum's independence approximately two years after the Daum Business Division was launched as an in-house independent company (CIC) in May 2023, effectively laying the groundwork for accelerating Daum's independent growth. Having gained independence as a formal legal entity with the approval of Kakao's board of directors, Daum Preparatory New Corporation plans to maximize efficiency and further strengthen its market competitiveness based on its independent management structure. The new corporation will pursue diverse experiments utilizing Daum's core assets, such as short-form content, media, and community, and will continuously seek synergy with Kakao's artificial intelligence (AI) and content capabilities. Major services previously provided by the existing Content CIC, including Daum Mail, Daum Cafe, Daum Search, Daum News, and Daum Shopping, will be transferred to and operated by the new corporation, with the business transfer process expected to be completed by the end of this year. Furthermore, to strengthen its business capabilities, the company is actively recruiting talent in various fields such as planning, development, infrastructure, and security. Yang Ju-il, the appointed CEO, expressed his ambition to respond nimbly to rapidly changing market environments and to "definitely create an opportunity for portal Daum's re-leap through quick and flexible decision-making." This demonstrates a strong will to create new value for Daum and secure future growth engines amidst intensifying competition.