SEOUL, July 18 (AJP) - Kakao Pay has scrapped its planned acquisition of SSG Pay and Smile Pay, two mobile payment services owned by Shinsegae Group, as its parent company Kakao Group pivots sharply toward artificial intelligence-focused investments, according to industry sources on Friday.
The decision marks a significant shift in Kakao Group’s broader strategic direction, which has seen the tech firm prioritize funding for its growing AI ambitions over expanding its fintech footprint.
Kakao Pay, a leading mobile payment platform in South Korea, had been in talks with Shinsegae Group since early this year in a bid to better compete with rival Naver Pay.
The two sides had finalized key terms, including pricing and corporate valuation, but the deal fell apart as Kakao Group reallocated capital toward its AI initiatives.
The move comes just weeks after Kakao Group sold approximately 430 billion won ($310 million) worth of shares in SK Square, a move widely viewed as an effort to raise funds for large-scale AI investments.
The now-abandoned acquisition was seen as part of Kakao Pay’s efforts to consolidate its position in South Korea’s highly competitive digital payments market.
Shinsegae’s SSG Pay and Smile Pay are embedded within the group’s robust retail ecosystem, including Shinsegae Department Store and e-commerce platform SSG.com.
Shinsegae Group said it remains committed to strengthening its payments business independently, pledging to enhance service stability and boost competitiveness across its digital commerce operations.
reporter
Candice Kim
candicekim1121@ajupress.com
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