[Asia Economy Reporter Yoo Hyun-seok] Zoom Internet is showing strong performance. The news that the US online securities platform Robinhood is aiming for a corporate value of 40 trillion won and is pushing for a Nasdaq listing appears to have influenced the stock price.
As of 10:23 AM on the 28th, Zoom Internet was trading at 7,660 won, up 5.66% (410 won) compared to the previous trading day.
According to foreign media, Robinhood submitted a revised listing application to the US Securities and Exchange Commission (SEC) proposing an initial public offering (IPO) price range of $38 to $42 per share. It plans to sell about 55 million shares through the IPO, and if the offering price is set at the upper limit of $42 per share, it could raise approximately $2.3 billion. As of the first quarter of this year, Robinhood's active users reached 17.7 million, doubling from 8.6 million a year ago.
Robinhood succeeded by developing an application (app) that allows the MZ generation (born early 1980s to early 2000s) to easily access stocks. It eliminated the securities trading fees typically charged by brokerage firms and built a user interface (UI) as simple as a game. It also introduced fractional share trading, allowing users to buy stocks in decimal units. Using Robinhood is similar to playing a game. Despite operating a commission-free brokerage app, it recorded sales of $959 million (about 1.1 trillion won) last year.
Zoom Internet established ‘Project Vanilla’ in partnership with KB Securities. They launched ‘Vanilla,’ a simple Mobile Trading System (MTS). Vanilla acts as a bridge connecting ‘brokerage firms and individuals,’ which was previously nonexistent, rather than just ‘stocks and individuals.’ Compared to existing brokerage MTS, Vanilla significantly reduces complex categories and focuses the screen on menus most frequently used by investors, such as watchlists and personal asset status, along with essential stock trading functions. Vanilla was developed with the goal of becoming the Korean version of Robinhood, the stock trading platform popular among young Americans.
Kim Chang-kwon, a researcher at Mirae Asset Securities, said, "We launched the simple MTS ‘Vanilla’ in June with the catchphrase of easy stock trading like online shopping," and added, "The app is currently running a commission-free event for new customers."
He continued, "Attention should be paid to Zoom Internet’s potential transition into a fintech company," adding, "The stock trading app jointly developed with KB Securities competes with platforms like Toss Securities."
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