South Korean internet giant Kakao has confirmed it is setting up a new blockchain subsidiary, but quashed rumors of a planned initial coin offering.

In a press conference hosted Tuesday, the operator of South Korea's largest messenger app, Kakao Talk, said the company has launched a new division to start developing a blockchain-powered platform for completion within the year. The new product will be open to the public as a foundation for application developers, Yonhap reports.

Called Ground X, the subsidiary is also planned to integrate future blockchain-based services with Kakao's existing internet offerings, according to Kakao's co-CEOs Joh Su-yong and Yeo Min-soo.

"Now at Kakao 3.0, we will continue to explore our growth potential by seamlessly integrating services among Kakao companies and actively building presence in the global market," Joh said at a news conference.