Leveraging its license for investment trading, Kakao Pay Securities will make a full-fledged push into underwriting initial public offerings (IPO) and move to build a global platform that lets U.S. investors easily invest in Korean stocks. In the mid to long term, it plans to expand into businesses that use its own capital, such as serving as a liquidity provider (LP) for exchange-traded funds (ETF), to diversify its retail-centered business structure.
Chief Executive Shin Ho-cheol of Kakao Pay Securities said at a press briefing at the Conrad Seoul in Yeouido on the 23rd, "There are many business opportunities opened by the investment trading license, but in the short term we plan to prioritize the IPO underwriting business," adding, "In the mid to long term, we are also reviewing businesses that can generate the strongest synergy with retail, such as sales and trading (S&T) and ETF LP."
◇ After IPOs, pushing a "K-stock platform" in the U.S.
Shin said he has been preparing for the IPO business for two years. "The license for investment trading has given us greater operational freedom, and for the next six to 12 months we will focus on that business," he said, adding, "We will also expand our role in connecting startup investment and IPOs by leveraging the group network, including Kakao Ventures and Kakao Investment." Based on its experience investing in startups, the company aims to increase the supply of venture capital and help build a sound listing ecosystem.
In overseas operations, the company is pursuing the buildout of a "K-Stock Global Gateway" with Siebert Financial, a securities firm listed on Nasdaq in the United States. The project will provide both trading infrastructure and content so U.S. investors can invest in Korean stocks more easily.
Shin said, "We will not stop at simply linking to an overseas broker; we will also offer Kakao Pay Securities' content, investment community, and user experience (UI/UX) so U.S. investors can properly understand the value of Korean corporations," adding, "We are preparing to launch in the United States in the first half of next year." Siebert and the working-level teams are holding weekly discussions, and in May an MOU was signed in the United States.
To enable 24-hour trading of Korean stocks, the company is also reviewing tokenization technology. Shin said, "U.S. investors face time differences with the Korean stock market, making trading difficult," adding, "Siebert has proposed tokenizing Korean stocks under U.S. regulations, and we are also in discussions with Korean financial authorities on the regulatory front." He added, however, "While there are advantages such as extended trading hours and real-time settlement, there are also concerns that volatility could increase, so we will proceed cautiously with investor protection as the top priority."
◇ "An era of 20 million investors"… unveiling an AI investing agent
The briefing also unveiled the company's AI strategy. Kakao Pay Securities plans to provide a customer-tailored investing agent based on explainable AI. Shin said, "Trust is more important than a smarter AI," adding, "Customers must be able to understand why the AI made a given judgment and what data it used as the basis for its recommendations." He continued, "Our goal is not an AI that merely recommends good financial products, but an AI that helps customers fully understand before they invest." Some features are slated for release by the end of the year.
In the announcement, Shin said, "Within three years, we will create an era in which 20 million people invest," adding, "Our goal is not to increase the number of accounts, but to create an environment where more people can invest properly and grow their assets." He said, "Two out of three people in Korea are still outside the capital market," adding, "To lower the barriers to investing, we will build an AI investing agent, a global investing platform, and even a culture of gifting stocks."
Earlier, on the 22nd, Kakao Pay Securities announced a promotion to give all couples getting married this year stocks worth up to 100,000 won per household as a congratulatory gift. Based on a certificate of marriage relation, applicants can receive the benefit by issuing the certificate in the KakaoTalk Wallet and submitting it to Kakao Pay Securities.
That day, Shin also unveiled a new plan to gift stocks to every baby born in 2027. The company is reviewing a grant size of about 100,000 won per person. Considering the annual number of births, Shin estimated that a budget of about 20 billion won would be needed, but said, "We think it is a budget the company can fully afford," adding, "We hope to create an environment where every newborn has a stock account from birth."