Hecto Financial Posts 46 Billion KRW in Q1 Sales, Sets New Record for Highest Quarterly Revenue

Hecto Financial recorded consolidated sales of 46 billion KRW in the first quarter of 2025, marking its highest-ever quarterly revenue.

On May 8, Hecto Financial announced that, on a consolidated basis for the first quarter of this year, it achieved sales of 46 billion KRW and operating profit of 3.7 billion KRW. Sales increased by 24.0% compared to the same period last year, while operating profit decreased by 9.4%.

The company attributed the increase in sales to the expansion of overseas services, the growth in new merchant transactions for its payment gateway (PG) business, and increased revenue from subsidiaries. However, due to the rapid growth of the "mobile payment" business, which operates on a prepayment structure, the company had to increase its allowance for bad debts. As a result, operating profit decreased by 9.4% year-on-year. Nevertheless, the company explained that not only did it achieve external growth, but it also saw substantial improvement in underlying profitability.

In fact, excluding the increase in allowance for bad debts, standalone operating profit for the first quarter rose by 1.4 billion KRW year-on-year to 6 billion KRW, representing growth of more than 30.4%. The company stated that, as the mobile payment business with a prepayment structure expanded, it conservatively set aside initial reserves, but the actual profitability of the business is even higher.

The main drivers of improved profitability were increased PG sales and a higher proportion of high-margin simple cash payments. PG sales grew by 44.3% year-on-year due to the influx of new merchants and increased mobile payment transaction volume. The simple cash payment segment, including the account-based membership product "Naetongjang Payment" and "mobile payment," also contributed to the rise in operating profit as the share of these high-margin payment methods increased.

This year, Hecto Financial is focusing not only on improving profitability in its existing businesses but also on full-scale overseas settlement services as it targets entry into global markets. The company is strengthening new business development targeting global e-commerce platforms seeking to enter Korea, while also supporting domestic sellers in expanding globally. Additionally, with the recent implementation of the Electronic Financial Transactions Act and the Act on the Prohibition of Discrimination against Persons with Disabilities, Hecto Financial is encountering new business opportunities such as increased demand for prepaid agency services and expanded installation of barrier-free kiosks.

Choi Jongwon, CEO of Hecto Financial, stated, "In the first quarter, we achieved not only external growth but also strong profitability, driven by the expansion of overseas services and mobile payment business." He added, "In the second half of the year, we will continue to grow new businesses such as overseas services and kiosks."

Hecto Financial is the only fintech company in Korea that possesses the full range of payment methods. Its main business is providing PG services that support major payment methods, including simple cash payments, credit cards, and mobile payments. Recently, the company has been focusing on the settlement of foreign currency payments for global e-commerce transactions.