June MyData Service Outlook
Preliminary IPO Listing Review Also in the Same Month
[Asia Economy Reporter Kiho Sung] Kakao Pay has unlocked the shackles of the suspension of its long-awaited MyData (personal credit information management) review. Kakao Pay, which had suspended its MyData service since February this year due to a preliminary permit denial, is expected to resume the service as early as June. Additionally, the preliminary review for listing on the stock exchange, the first hurdle for its initial public offering (IPO), and the preliminary approval for a digital non-life insurance company are scheduled for next month, marking the first test for Kakao Pay's platform expansion.
According to the financial sector on the 13th, the Financial Services Commission held its 9th regular meeting the day before and granted Kakao Pay a preliminary permit to operate the MyData business.
A Financial Services Commission official explained, "Kakao Pay is a company that has been providing similar MyData services," adding, "We judged that Kakao Pay meets the requirements under the Credit Information Act, including major shareholder eligibility, and can operate the MyData service."
Previously, Kakao Pay applied for a preliminary permit review for the MyData business last year but it was temporarily put on hold. The issue was the major shareholder eligibility of Ant Group, the parent company of Alipay Singapore Holdings (45%), Kakao Pay's second-largest shareholder. The financial authorities needed to verify whether Ant Group had been sanctioned by Chinese regulatory agencies, but they had not received the relevant documents.
The Financial Services Commission expects Kakao Pay to apply for the final permit within this month. Since the final permit review process usually takes about a month, if the application is submitted by the end of May and no major issues arise, Kakao Pay's MyData service could resume within June.
Kakao Pay is relieved after overcoming a major hurdle. A Kakao Pay official stated, "We plan to complete the final permit and accelerate the resumption of asset management services," adding, "We will do our utmost to evolve into an asset management service that connects users with optimal products and services at the moment they need them."
With the green light for the MyData service, Kakao Pay's IPO is also expected to proceed smoothly. Kakao Pay submitted its application on the 26th of last month, and if there are no delays in the review process, it is expected to receive the review results around the end of June. Additionally, Kakao Pay has applied for preliminary approval to establish a digital non-life insurance company with the Financial Services Commission at the end of last year and is awaiting the results. Although delayed compared to the schedule, the industry expects the results to be announced around late May or June.
If the important events in June proceed smoothly, Kakao Pay's growth potential is expected to increase further. Kakao Pay is preparing to launch postpaid payment and comprehensive payment services in the second half of this year, as well as Kakao Pay Securities' Mobile Trading System (MTS) and Kakao Insurance.
An industry insider said, "With the resumption of the MyData service, the IPO, which is expected to reach up to 18 trillion won, will also proceed smoothly," adding, "The implementation of comprehensive payment services, the biggest event in the second half of this year, will see Kakao Pay take the lead based on the know-how it has accumulated so far."
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