Shinsegae Group's Sale of SSG Pay Falls Through Again

Change in Kakao Group's Investment Strategy Direction
Payment Business Division Spun Off Earlier This Month
"SSG Pay to Pursue Independent Growth"

The sale of Shinsegae Group's simple payment platform SSG Pay (SSG Pay, Smile Pay) has fallen through once again. Shinsegae Group had been in negotiations with Kakao Pay regarding the sale, but it appears that the deal collapsed at the last minute when the Kakao Group withdrew.

According to Shinsegae Group on July 17, the company recently halted negotiations with Kakao Pay over the sale of SSG Pay. In a press release issued that afternoon, Shinsegae Group stated, "We had been in discussions regarding a strategic partnership in the simple payment business sector, but decided to discontinue talks after considering changes in each company's strategic direction."

The group further explained, "While there were no disagreements over key terms such as corporate valuation, both parties mutually agreed to end discussions on collaboration due to changes in the strategic investment priorities of Kakao Group."

Shinsegae Group had been pursuing the sale of SSG Pay to improve the efficiency of SSG.com’s online business. In 2023, the company attempted to sell the platform to Toss, but the deal was called off due to differences over detailed terms. At that time, the corporate valuation was approximately 700 billion won.

It is reported that Kakao Pay entered into negotiations with Shinsegae Group in an effort to narrow the gap with Naver Pay, the leading player in the simple payment sector. However, Kakao Group recently decided not to proceed with the acquisition, as it is preparing for large-scale investments in artificial intelligence (AI) and its internal investment direction differs from that of the payment business.

As the sale has fallen through twice, Shinsegae Group has stated that it will focus on enhancing the expertise and stability of its payment business. Earlier this month, Shinsegae Group established Platinum Payments by spinning off the SSG Pay division and incorporated it as a subsidiary of SSG.com. The company explained that it aims to increase specialization by operating the commerce and payment businesses separately.

Shinsegae Group stated, "We will pursue independent growth of the simple payment business," adding, "Our plan is to strengthen competitiveness in both the commerce and payment business sectors."