By Park Hyong-ki
KakaoPay has submitted its application to the Financial Services Commission (FSC) for approval of its acquisition of a 60 percent stake in Baro Investment & Securities, the mobile payment service provider said Wednesday.
However, the company is facing market doubts that it will be able to gain immediate approval given that Kakao's owner Kim Beom-su is on trial for allegedly breaking the Antitrust Law.
Kim's Kakao, the creator of the most-used mobile messenger, failed to report and disclose five of its subsidiaries to the Fair Trade Commission.
Kakao said this was an "honest mistake" as it was not aware of some revisions in the law governing conglomerates' disclosures of their subsidiaries.
The company has a 60.9 percent stake in KakaoPay, and the rest is owned by Alibaba's Alipay Singapore Holding, according to KakaoPay's audit filing.
KakaoPay said the issue concerning founder Kim is separate from the company's acquisition of Baro Investment.
The mobile payment firm acquired the small brokerage in October last year as part of its plan to launch a stock brokerage and asset management business.
Baro Investment's operating profit stood at 16.3 billion won ($15 million) on sales of 63.1 billion won in 2018.
"We have been preparing for the takeover. After the approval, the company will provide brokerage and asset management services to KakaoPay users via our platform connected with Baro," said a KakaoPay spokeswoman.
The company said it could also further connect such services with Kakao Bank's internet banking platform as the latter seeks to boost its nonbank business.
Kakao Bank recently launched a brokerage service allowing its users to open accounts at Korea Investment & Securities and invest in stocks.
Korea Investment Holdings, which owns Korea Investment, is the biggest shareholder with a 50 percent stake in Kakao Bank. KB Kookmin Bank has an 18 percent stake in Kakao Bank, according to the internet bank.
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| Kakao founder Kim Beom-su |
However, the company is facing market doubts that it will be able to gain immediate approval given that Kakao's owner Kim Beom-su is on trial for allegedly breaking the Antitrust Law.
Kim's Kakao, the creator of the most-used mobile messenger, failed to report and disclose five of its subsidiaries to the Fair Trade Commission.
Kakao said this was an "honest mistake" as it was not aware of some revisions in the law governing conglomerates' disclosures of their subsidiaries.
The company has a 60.9 percent stake in KakaoPay, and the rest is owned by Alibaba's Alipay Singapore Holding, according to KakaoPay's audit filing.
KakaoPay said the issue concerning founder Kim is separate from the company's acquisition of Baro Investment.
The mobile payment firm acquired the small brokerage in October last year as part of its plan to launch a stock brokerage and asset management business.
Baro Investment's operating profit stood at 16.3 billion won ($15 million) on sales of 63.1 billion won in 2018.
"We have been preparing for the takeover. After the approval, the company will provide brokerage and asset management services to KakaoPay users via our platform connected with Baro," said a KakaoPay spokeswoman.
The company said it could also further connect such services with Kakao Bank's internet banking platform as the latter seeks to boost its nonbank business.
Kakao Bank recently launched a brokerage service allowing its users to open accounts at Korea Investment & Securities and invest in stocks.
Korea Investment Holdings, which owns Korea Investment, is the biggest shareholder with a 50 percent stake in Kakao Bank. KB Kookmin Bank has an 18 percent stake in Kakao Bank, according to the internet bank.
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