Kakao Pay Securities has outlined a plan to enter the initial public offering (IPO) market and expand the number of investors in South Korea to 20 million within three years, leveraging its artificial intelligence (AI)-based investment services.
During a press conference held on July 23 in Yeouido, Seoul, CEO Shin Ho-cheol stated, "We will lower the barriers to capital market participation based on our accessibility as a national platform and our AI technology. We aim to create a new financial culture where important life moments are celebrated with stocks."
Following its recent licensing for investment trading, the company is expected to accelerate its entry into the IPO market. Kakao Pay Securities has been preparing for IPO underwriting since two years ago. On July 1, the firm obtained its investment trading license, establishing a foundation to conduct corporate finance activities, including underwriting and acquiring corporate bonds and IPOs.
The company will particularly focus on public offerings for startups, supported by venture capital investments. CEO Shin noted, "Kakao Pay Securities has a higher proportion of venture capital investments compared to other brokerages," adding that it will actively support promising startups in their investments and listings by utilizing its network with affiliates like Kakao Ventures and Kakao Investment.
In the medium to long term, the company aims to become a liquidity provider (LP) for exchange-traded funds (ETFs). Shin explained, "The proportion of ETF trading among Kakao Pay Securities customers is particularly high," and the firm is preparing its LP business based on its recent investment trading license. Additionally, it is considering entering the sales and trading (S&T) sector, which can synergize with its strengths in retail.
Kakao Pay Securities also revealed its strategy for expanding its customer base through the Kakao ecosystem. Currently, Kakao Pay Securities services are available on the Kakao Pay application, and starting in August, stock trading services will also be accessible through Kakao Bank. Shin emphasized, "The influx of customers through the Kakao Pay app is resulting in the opening of 100,000 to 200,000 new accounts each month," and stated that the channel expansion strategy through Kakao Bank will enhance its competitiveness in acquiring customers compared to other brokerages.
Regarding its recent integration as a wholly-owned subsidiary of Kakao Pay, the company clarified that it has no plans for a separate listing.
Kakao Pay Securities presented three key growth strategies: popularizing asset formation among the public, building a global investment ecosystem to internationalize K-stocks, and leading a new investment culture. By actively utilizing the Kakao ecosystem, including KakaoTalk, Kakao Pay, and Kakao Bank, the firm aims to lower investment barriers and open the era of 20 million investors in South Korea within three years. Additionally, it plans to promote a campaign to gift stocks to newborns in the coming year and couples marrying this year, further embedding investment culture into daily life.
Furthermore, the company aims to support domestic stock investments for U.S. investors through a strategic partnership with Siebert Financial, a Nasdaq-listed firm, enhancing global investment accessibility for Korean stocks.
* This article has been translated by AI.
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