Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Kakao approves 5-for-1 stock split
Kakao CEO Yeo Min-soo / Courtesy of Kakao
By Kim Bo-eun
By Kim Bo-eun
Kakao, the nation's leading internet company, will conduct a 5 for 1 stock split, after the plan was approved at the tech firm's general shareholders' meeting held Monday.
The stock split enables investors to purchase Kakao's stock at one fifth of its price. Kakao's stock price closed at 487,500 won, Monday. Individual investors will be able to purchase Kakao shares for less than 100,000 won.
The split will increase the number of Kakao's issued shares to 443,523,100 from 88,704,620 shares. The newly split shares will be listed on April 15. Trading of Kakao stocks will be suspended from April 12 to April 14.
Kakao is seen to be carrying out the split to make its stocks more affordable to individual investors and boost its stock value.
Kakao's tech rival Naver as well as Samsung Electronics saw the portion of their minority shareholders grow and stock prices rise after their stock splits conducted in 2018.
"Kakao will make efforts for the growth of various lines of business to continue and make business models profitable," CEO Yeo Min-soo said at the meeting held on the southern resort island of Jeju, where the company's headquarters are located. "We will not only show financial improvements but heighten our corporate value through ESG management that values the environment, society and governance structure."
The meeting approved the establishment of Kakao's ESG committee, by stipulating it in the company's articles of association.
The committee, affiliated with the company's board, was established in January. Its role is to supervise Kakao's sustainable management strategies. The committee is comprised of Kakao Chairman Kim Beom-su, who is the head, and two outside directors.
The plan to separate Kakao's music streaming business, "Melon," into a separate entity was also approved at the meeting. Melon Company will become a wholly owned affiliate of Kakao. The spinoff is seen as a means to strengthen Kakao's content services.
In addition, a 150 won dividend payout per share was approved. The meeting also authorized a plan to provide stock options of 888,000 shares to 319 employees.
Meanwhile, some shareholders complained about the difficulties they face in taking part in the shareholders' meeting, which was held on Jeju 454 km south of Seoul. Kakao said it has enabled shareholders to cast their votes online prior to the meeting, but has yet to decide whether it will provide online streaming of the meeting or whether to hold it possibly at Kakao's Pangyo office just south of Seoul.
Kakao posted record sales on an annual basis last year, powered by ads on KakaoTalk as well as new businesses in mobility, fintech and content. Total sales in 2020 surged 35 percent from the previous year to 4.15 trillion won. Operating profit jumped 121 percent over the same period to 456 billion won.