Kakao Pay Securities Launch... First Step in Upgrading Securities Accounts

Diversification of Investment Product Portfolios... Expansion of Investment Services

[Asia Economy Reporter Jin-gyu Lee] Kakao Pay is taking its first step into the securities business after completing the acquisition of a securities company.

On the 6th, Kakao Pay announced that it will change the name of Baro Investment & Securities to 'Kakao Pay Securities' and upgrade Kakao Pay Money to a securities account.

On the same day, Kakao Pay completed the incorporation of Baro Investment & Securities as an affiliate and changed its name to Kakao Pay Securities. Kakao Pay holds 60% of the shares in Kakao Pay Securities, which will operate under a dual CEO system. Newly appointed CEO Kim Dae-hong will oversee overall management and the retail business division, while CEO Yoon Ki-jung will continue to lead the existing corporate finance division.

Kakao Pay and Kakao Pay Securities plan to lead the 'popularization of investment and asset management' by making asset management services, which were previously concentrated among a small number of wealthy individuals and financial experts, accessible to everyone through synergy.

Kakao Pay's lifestyle financial platform will be connected with Kakao Pay Securities. By upgrading Kakao Pay Money to a securities account, user benefits will be enhanced, and investment product portfolios will be diversified through Kakao Pay Securities by opening fund products in the 'Kakao Pay Investment' service.

In the long term, based on Kakao Pay's big data and artificial intelligence (AI) technology, they plan to expand investment services such as new types of investment solutions and advisory asset allocation services that allow users with little investment experience to earn profits more easily. Furthermore, they are also planning innovative asset management services based on non-face-to-face platforms using robo-advisors.

Ryu Young-joon, CEO of Kakao Pay, said, "We will boldly challenge ourselves together with Kakao Pay Securities to bring new changes and innovations to the domestic financial industry and users' financial lives. We will create a new investment culture through the Kakao Pay platform so that anyone can conveniently and safely manage assets without discrimination based on information or asset size."

Kakao Pay is accepting pre-applications until the 18th for Kakao Pay users to upgrade Kakao Pay Money to a securities account. Once upgraded, a securities account will be opened and Kakao Pay Money will be automatically transferred. Users who pre-apply will receive a pre-tax maximum annual return of 5% (deposit usage fee) on the account balance where Kakao Pay Money is automatically deposited after the upgrade, provided by Kakao Pay Securities.

Unlike existing financial products, users can freely deposit and withdraw funds while receiving a basic pre-tax annual benefit of 1.1% on the average weekly balance. Especially, until May 31 of this year, a promotion will be held to provide a pre-tax annual 5% return on average weekly balances between 10,011 KRW and 1,000,000 KRW to increase benefits. Also, since the funds are deposited into a securities account, unlike the existing Kakao Pay Money, users can hold more than 2 million KRW without limits, and deposits are protected up to 50 million KRW per person. Applications can be made through Kakao Pay channel messages sent by the 18th, and upgrades will be guided sequentially from the 20th only to pre-applicants.

Kim Dae-hong, CEO of Kakao Pay Securities, stated, "We will break the conventions of traditional finance and expand lifestyle finance through investment services that anyone can easily and comfortably enjoy in daily life."