Kakao Pay Integrates Kakao Pay Securities as Wholly Owned Subsidiary

Kakao Pay is set to integrate Kakao Pay Securities as a wholly owned subsidiary. This move is seen as a step to simplify the governance structure within the group while strengthening the foundation for future expansion into digital asset businesses.

According to a disclosure on June 23 from the Financial Supervisory Service's electronic disclosure system, Kakao Pay has decided to acquire an additional 2,914,652 shares of Kakao Pay Securities for approximately 173 billion won. The acquisition is scheduled to be completed by July 20.

Once this transaction is finalized, Kakao Pay's stake in Kakao Pay Securities will increase from the current 86.18% to 100%, officially converting Kakao Pay Securities into a wholly owned subsidiary.

Kakao Pay stated in its disclosure that the purpose of this acquisition is to obtain the remaining shares held by the second-largest shareholder of Kakao Pay Securities, thereby enhancing management efficiency through improved governance.

Recently, Kakao Pay has been steadily increasing its stakes in major financial affiliates to strengthen its wholly owned subsidiary structure. In July 2023, it integrated Kakao Pay Insurance, and in January of the previous year, it made PayMint a wholly owned subsidiary. Kakao Pay has also been consistently raising its stake in Kakao Pay Securities and its overseas payment subsidiary, KPIS.

With Kakao Pay Securities transitioning to a wholly owned subsidiary, the burden of reconciling interests with minority shareholders will be reduced, allowing for quicker decision-making in investments, organizational operations, and new business initiatives.

Kakao Pay is particularly focused on developing digital asset-based financial services, such as stablecoins and security token offerings (STOs), as future growth drivers. This strategy aims to enhance its capabilities in related business initiatives by strengthening ties with its securities subsidiary.

A Kakao Pay representative remarked, "Strengthening collaboration with Kakao Pay Securities is crucial to respond to the new financial environment, including stablecoins and token securities. We expect this integration will serve as a new growth engine for both companies."