Hectofinancial, the No.1 fintech company in account-based payment services in South Korea, announced its consolidated financial results for 2024 on the 5th.
In 2024, Hectofinancial recorded consolidated ▲revenue of 159.3 billion KRW and ▲operating profit of 13.3 billion KRW. These figures represent growth of 4.1% and 5.7% respectively compared to the previous year, setting new all-time high annual records for both revenue and operating profit.
Hectofinancial’s strong performance was driven by an increase in overseas services and new merchant sign-ups for PG (Payment Gateway). Despite the T-mep incident triggered last year, proactive risk management minimized losses, and the global e-commerce settlement service, which has been the focus of new business, began to contribute significantly to profits.
However, Q4 results showed a decline in profitability compared to the previous year due to an increase in allowance for doubtful accounts aligned with a conservative bad debt policy. This was because sales from the ‘mobile phone payment’ pre-settlement structure grew, leading to a corresponding increase in the allowance for doubtful accounts that must be held stably.
This year, Hectofinancial plans to focus on targeting the global market beyond South Korea. It will strengthen new sales activities targeting global e-commerce platforms wishing to enter Korea and simultaneously serve as a bridge to help domestic sellers expand globally.
Choi Jongwon, CEO of Hectofinancial, analyzed, “Last year’s key achievement was laying the foundation for sustainable growth by expanding the sales proportion of highly profitable payment methods and advancing global business,” adding, “Our goal for 2025 is to become a truly ‘global fintech company’ by strengthening overseas partnerships and refining our business model.”
Hectofinancial is the No.1 company in account-based payment services in South Korea and the only fintech company in the country that owns the source of all payment methods. It primarily supplies PG services offering major payment methods such as simple cash payments, credit cards, and mobile phone payments, and recently has been expanding its achievements by focusing on foreign currency settlement of payment funds in global e-commerce.
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