Kakao's founder Kim Beom-soo announced that the CA Council, which was strengthened two years ago to address management crises, will disband following the separation of KakaoAI and KakaoX. The company stated that there are no plans to establish a new group-level council after the split. With the advent of the artificial intelligence (AI) era, independent management among subsidiaries is expected to resume.
On September 28, Kakao appointed Kim Do-young, the designated head of KakaoX, as a co-chair of the CA Council, transitioning to a joint leadership structure with Jeong Shin-a. This co-chair system will operate temporarily until the split, after which the CA Council's role as the group's control tower will conclude.
A Kakao representative stated, "We are in a situation where we need to consider and discuss the handover and various matters concerning KakaoX and KakaoAI together," adding that the co-chair appointment was made to ensure continuity during the split process.
The CA Council has served as a control tower to coordinate major decisions dispersed among subsidiaries and align the overall direction of the group. After the split, KakaoX and KakaoAI will each be responsible for their major decisions and management, effectively returning to a past emphasis on subsidiary autonomy.
The CA Council emerged as a control tower during the management crisis in 2023. Amid legal risks related to allegations of stock manipulation during the acquisition of SM Entertainment and controversies surrounding subsidiaries, founder Kim Beom-soo initiated a group-wide reform effort. He took on the role of chair of the CA Council's management reform committee.
In January of the following year, the CA Council was restructured into a joint leadership of Kim Beom-soo and Jeong Shin-a to facilitate understanding among subsidiaries and build consensus on key issues.
At that time, Kim emphasized the need for comprehensive reforms, including personnel changes, governance, branding, and corporate culture. Jeong also indicated a shift from the previous autonomous management approach to enhance the group's cohesion. Subsequently, the CA Council played a key role in coordinating major issues such as strategy, investment, finance, and personnel at the group level, supporting Kim Beom-soo's reform initiatives.
The final task assigned to the CA Council, which had expanded its role to strengthen group cohesion, is the human division of Kakao into two companies. Currently, task forces involving key departments such as finance and personnel are working on practical tasks for the split.
After the split, the existing CA Council organization is expected to be transferred to KakaoX. The company plans to maintain business cooperation between the KakaoTalk platform and its subsidiaries as before. However, the group control tower function that coordinated KakaoAI and KakaoX will not continue.
Industry observers believe that the human division will lead to changes in the operational methods of Kim Beom-soo's reforms, which have been centered around the CA Council's restructuring in 2024. Unlike the past focus on securing a group identity, there is an expectation for a decision-making structure optimized for the AI era that emphasizes subsidiary autonomy.
A Kakao representative stated, "There will be no separate organization like the CA Council after the split," adding, "Collaboration between the two companies will continue as before, but we do not plan to have an organization that coordinates the subsidiaries as the CA Council did."
* This article has been translated by AI.
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