Kakao : Decision on Capital Reduction

Decision on Capital Reduction

1. Class and number of shares to be reduced	Common stock (shrs.)	3,239,741
Different classes of stocks (shrs.)	-
2. Par value per share (KRW)	100
3. Changes in capital stock	Before capital reduction (KRW)	After capital reduction (KRW)
44,662,289,600	44,338,315,500
4. Changes in number of shares issued	Category	Before capital reduction (shrs.)	After capital reduction (shrs.)
Common stock (shrs.)	446,122,896	442,883,155
Different classes of stocks (shrs.)	-	-
5. Capital reduction ratio	Common stock (%)	0.73
Different classes of stocks (%)	-
6. Record date for capital reduction	2022-05-03
7. Method of capital reduction	Retirement of treasury stocks
8. Reasons for capital reduction	The decision was made to retire treasury stocks in order to enhance shareholder value - Treasury stocks acquired in the merger process can be disposed by resolution of the general meeting of shareholders in accordance with the capital reduction procedure based on Article 343 of the Commercial Act (Disposal of stocks)
9. Schedule for capital reduction	Scheduled date of shareholders' meeting	2022-03-29
Book closure period	-
Period for submission of old share certificates	Start date	-
End date	-
Scheduled period of trading suspension	Start date	-
End date	-
Scheduled delivery date of new share certificates	-
Scheduled listing date of new shares	2022-05-16
10. Period for filing statement of objections by creditors	Start date	2022-03-30
End date	2022-05-02
11. Place for submitting old share certificates and delivery of new share certificates	-
12. Date of board resolution (decision date)	2022-02-24
- Attendance of outside directors	Present (No.)	4
Absent (No.)	0
- Attendance of auditors (members of Audit Committee)	Present
13. Subject to reporting to the Fair Trade Commission?	No
14. Other matters to be factored into investment decisions	(1) Stock details subject to capital reduction: treasury stocks acquired through the new merger stocks allocated to part of Kakao M stocks held by Kakao, when Kakao Co., Ltd. and the former Kakao M Co., Ltd. were merged; treasury stocks acquired through the exercise of the right to claim purchase of shares by shareholders who oppose the merger; and treasury stocks acquired through the fraction shares arising from the merger process, etc. (2) Method of capital reduction: As only 3,239,741 of the Company's treasury stocks, which are part of the Company's 12,137,094 shares, will be voluntarily/freely retired, there is no change in the stocks owned by ordinary shareholders. Consequently, there is no procedure for submitting old stock certificates and delivering new stock certificates. (3) The above "9. Schedule for capital reduction- Scheduled date of listing of new shares" is the scheduled date for the change listing. (4) The above information and schedule are subject to change according to consultation with the relevant organizations and the resolution of the general meeting of shareholders; and the decision of other details (including the schedule) and specific tasks related to the capital reduction are delegated to the CEO.

※ Details of Different Classes of Stocks

Basis in articles of incorporation	-
Details of different classes of stocks	-
Others	-