Kakao Pay Adds 'Information Services' to Business Scope, Signaling Stablecoin Push

Kakao Pay is moving to expand its stated business scope in a step widely seen as formalizing plans tied to stablecoins. The move comes as South Korea nears passage of a second phase of digital-asset legislation, and is viewed as early positioning to compete in stablecoin issuance and distribution. 

According to the financial industry on the 13th, Kakao Pay plans to add “other information services” as a new business purpose at a shareholders meeting scheduled for March 23. 

The addition is being interpreted as part of building a next-generation digital wallet that can hold, trade and exchange a range of digital assets. A Democratic Party task force and the Financial Services Commission agreed during the second-stage virtual-asset legislative process to diversify stablecoin issuers beyond a bank-centered model, opening a path for fintech companies to take a leading role. 

Kakao Pay, along with Naver and others, has been cited as one of the companies expected to benefit most from adopting a stablecoin system. If a won-denominated stablecoin is introduced, the company is expected to see demand tied to consumers’ overseas direct purchases and overseas customers buying fandom goods, while also reducing financial costs, the report said. 

While major banks and card companies are building stablecoin cooperation frameworks, Kakao Pay is preparing at the Kakao Group level. Kakao Pay CEO Shin Won-geun is leading the group’s stablecoin task force and driving coordination among affiliates. KakaoBank is responsible for responding to financial regulation and building account-based trust infrastructure, while Kakao Pay will handle payments and remittances.

Kakao Pay has previously pursued a blockchain-based identity verification service, giving it relatively strong familiarity with blockchain technology. Kakao is exploring service expansion based on its platform ecosystem, and is expected to seek synergies across affiliates in areas where stablecoin payments could be applied, including commerce, entertainment, content and mobility.

Kakao Pay has steadily added new business lines to strengthen competitiveness in both nonfinancial and financial services. In 2022, it added △personal credit information management △specialized personal credit rating △buy-now-pay-later and lending-related services. In 2023, it added △online brokerage for sales of goods and services, and in 2024 △location information and location-based services. 

The company reached profitability for the first time last year. Operating profit totaled 42.7 billion won, marking its first operating profit since the company launched in 2017 and ending nine years of operating losses. Net profit also turned positive at 41.0 billion won. Payment-service revenue rose 5.74% from a year earlier to 518.1 billion won. Over the same period, financial-services revenue increased 58% to 387.9 billion won, and platform-services revenue climbed 62% to 52.2 billion won.  

If stablecoin-related business is added, Kakao Pay’s growth engine is expected to strengthen further. According to the securities industry, Kakao Pay’s operating profit is projected at 128.0 billion won this year, 260.0 billion won in 2027 and 586.3 billion won in 2028.