Galaxia Moneytree, Strong Solo Rally on STO Expectations

Stock Price Rises 70% This Month on Token Securities Growth Expectations
STO Business Utilizing Carbon Emission Permits and Renewable Energy 추진

Amid increased volatility in the KOSDAQ market, electronic payment gateway (PG) company Galaxia Moneytree is continuing its strong performance alone. The corporate value of Galaxia Moneytree is growing based on expectations for the growth of token securities. It is preparing for the opening of the token securities market by signing business agreements with various partners, including financial companies such as Mirae Asset Securities and NH Nonghyup Bank.

According to the financial investment industry on the 14th, Galaxia Moneytree's stock price has risen 70% since the beginning of this month. It jumped from 4,290 KRW at the end of last month to 7,300 KRW the day before. Domestic institutional investors led the price increase by accumulating net purchases of 1.05 million shares. Individuals recorded a cumulative net sale of 1.02 million shares. The foreign ownership ratio slightly decreased from 0.71% to 0.42%.

Galaxia Moneytree developed Korea's first mobile phone payment service. Through its integrated electronic payment system 'BillGate,' it provides all payment method modules needed by merchants, including mobile phone and credit card payments and account transfers. It issues and distributes paper-type department store gift certificates in mobile form. It offers various types of gift certificates and coupons, such as mobile gift certificates and mobile coupons in PIN number form.

As of the first half of this year, it recorded cumulative sales of 63.2 billion KRW and operating profit of 4.1 billion KRW. Compared to the same period last year, sales increased by 27.2%, but operating profit decreased by 25.8%.

The financial investment industry interprets that the expectation that Galaxia Moneytree will benefit when the token securities issuance (STO) market opens is influencing the stock price. Galaxia Moneytree is actively promoting the STO business in accordance with the Financial Services Commission's guidelines.

Token securities refer to securities under the Capital Markets Act that are digitized based on distributed ledger technology. They can be defined as securities issued as digital assets. Hana Financial Research Institute, based on Boston Consulting Group's global market outlook, forecasted that the domestic STO market size will reach 34 trillion KRW in 2024. As the market grows substantially, it is expected to reach 367 trillion KRW by 2030.

Various companies in Korea are developing token securities services. Galaxia Moneytree is promoting STO projects utilizing carbon emission rights and renewable energy. It has built an STO platform with its partner Cardo. It signed a business agreement to participate in the first STO consortium in the banking sector together with NH Nonghyup Bank. Last month, it signed a business agreement to strengthen cooperation with Mirae Asset Securities. Mirae Asset Securities and Galaxia Moneytree decided to create business opportunities using their infrastructure. They plan to jointly research various underlying assets suitable for token securities and add products. Galaxia Moneytree is preparing to issue token securities not only for renewable energy but also for various underlying assets such as racehorses and aircraft finance.

On the 7th, it signed a business agreement with electric vehicle charging infrastructure company ChargeIN to launch token securities products. Galaxia Moneytree will build the token securities issuance platform, while ChargeIN will handle business support for product launch and the construction of electric vehicle charging facilities, taking charge of overall commercialization. They also plan to discover additional products combining finance and electric vehicle charging infrastructure.

Sehee Kim, a researcher at Eugene Investment & Securities, said, "Given the characteristics of token securities, structuring the product well is key." She explained, "Galaxia Moneytree has formed partnerships with account management institutions, trust institutions, and underlying product companies and has structured the STO." She added, "They are progressing the business at a very fast pace," and "The visibility of the STO business will be the most important factor for the stock price direction."