KakaoBank is set to acquire Mastern Capital, marking its official entry into the capital industry. This announcement comes about two months after the company revealed its plans for mergers and acquisitions (M&A) in the capital sector during its first-quarter earnings report. The move aims to expand its business portfolio into the non-banking credit market and accelerate its transformation into a comprehensive financial platform.
On June 25, KakaoBank announced that it will acquire 100% of Mastern Capital. Established in 2022 through a joint investment by Mastern Investment Management and NH Investment & Securities, Mastern Capital specializes in credit finance, focusing on leasing and corporate finance.
KakaoBank plans to finalize the acquisition by the end of this year, pending regulatory approvals, to establish a foundation for its capital operations.
This acquisition is part of KakaoBank's strategy to enhance its corporate value and secure growth momentum by entering the non-banking credit business. The company intends to leverage its experience in operating non-face-to-face financial services and its digital technology to transition traditional face-to-face capital services to a more digital approach.
Initially, KakaoBank plans to target the auto finance market, starting with installment financing. It aims to expand digital-based auto finance services in collaboration with auto distribution platforms and gradually diversify its credit portfolio into leasing, rental, corporate finance, and investment finance.
Earlier, Kwon Tae-hoon, KakaoBank's Chief Financial Officer, stated during the first-quarter earnings conference call that the company is reviewing various opportunities for M&A in capital firms with the goal of strengthening corporate finance and entering the non-banking credit market by the end of the year.
A KakaoBank representative remarked, "We aim to extend our accumulated expertise in non-face-to-face financial innovation into the capital industry to provide new financial experiences across various sectors. Through gradual business expansion, we will enhance productive finance and improve platform competitiveness and capital efficiency to boost corporate value."
* This article has been translated by AI.
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