Kakao Pay's IPO Faces Another Sudden Halt... Financial Supervisory Service "Considering Request for Amendment of Securities Registration Statement"

[Asia Economy Reporter Ji Yeon-jin] Kakao Pay's planned stock market debut next month has been delayed once again. Financial authorities recently judged that the investment and insurance services on online financial platforms violate the Financial Consumer Protection Act (FCPA), making disruptions to the listing schedule inevitable.

A Financial Supervisory Service (FSS) official said in a phone interview with Asia Economy on the 10th, "Based on the Financial Services Commission's (FSC) points of concern, we will examine whether there are any inconsistencies with the contents of the securities registration statement," adding, "Since there are reports that some of Kakao Pay's services may be unable to operate, we are verifying the facts."

The FSC recently announced that the financial product recommendation and comparison services operated by online platforms such as Kakao Pay, which were presented as 'advertisements,' are considered 'intermediation' and thus violate the FCPA, which will be enforced from the 25th of this month. For example, if the first screen displays services such as 'payment, loans, insurance,' along with 'investment,' consumers are likely to perceive the platform as the contracting party for financial products. Since this constitutes 'intermediation,' operating without the relevant business registration is prohibited. The FSS insists that any violations of the FCPA must be reflected in the securities registration statement to protect investors.

Kakao Pay postponed its listing schedule once after receiving a request to amend its securities registration statement from the FSS in July. Kakao Pay submitted a revised registration statement last month. According to this, Kakao Pay plans to conduct demand forecasting on the 29th of this month, followed by public subscription for shares on the 5th and 6th of next month. The effectiveness of this registration statement will take effect from the 25th of this month, but if the FSS requests another amendment before then, the listing schedule will inevitably be delayed.