IPO Demand Surges with Fintech Industry Growth
Targeting Global Expansion and Profitability for Stock Market Entry
Recently, domestic fintech (finance + technology) companies have been actively pursuing initial public offerings (IPOs). With plans set for the second half of this year and next year, each company is aiming to enter the stock market with its own unique growth strategy. The market believes that companies capable of maintaining steady profitability amid intensifying global competition will have an advantage in the IPO race.
According to the financial investment industry on August 25, K Bank is making its third attempt at an IPO, aiming to be listed on the KOSPI in the second half of this year. Last year, the company postponed its listing due to a sluggish stock market and weak demand forecasts from institutional investors. However, this year, K Bank is targeting not only external growth but also diversification of its profit base.
K Bank has been focusing on its loan portfolio and platform business through large-scale capital expansion, but it has continued to face criticism for its high dependence on virtual asset exchange deposits. In response, K Bank achieved 12.74 million customers and a net profit of 122.4 billion won last year, demonstrating growth in both scale and profitability. Its key challenges going forward are reducing dependence on Upbit and generating stable profits by expanding into new businesses.
Viva Republica (Toss) is fueling IPO expectations after turning a profit for the first time since its founding last year. Viva Republica aims to grow into a global fintech company through a listing on the US NASDAQ, and is reportedly considering the possibility of a dual listing in both Korea and the United States.
To this end, Viva Republica is pushing to enter the Australian market. The company plans to use Australia as a testbed for global expansion and to introduce a customized super app model in overseas markets in the future. Since Toss's domestic market share in the simple payment sector is relatively lower than that of Naver Financial and Kakao Pay, the company appears to be seeking to compensate for this through its overseas business.
Naver Financial has maintained steady growth and is the only big tech company to consistently remain profitable. In 2023, it posted sales of 1.4765 trillion won and operating profit of 91.2 billion won, marking significant year-on-year growth, with its operating margin exceeding 6%.
Naver Financial's core competitive edge lies in the Naver Pay payment ecosystem, which has expanded its offline merchant network to 3 million. The company is also actively expanding its merchant and payment channels overseas through partnerships with global firms such as Alipay Plus and UnionPay. By broadening its scope to include securities and real estate services as part of its comprehensive financial platform strategy, Naver Financial is also enjoying increased traffic and revenue.
In June, during a press conference marking the 10th anniversary of Naver Pay, Naver Financial announced new business strategies such as offline payment terminal services and a KRW stablecoin, while also stating that it is keeping the door open for a potential IPO.
There are also companies that are better known abroad than domestically. BalanceHero is a domestic fintech company experiencing rapid growth in the Indian market. Based on its self-developed AI Alternative Credit Scoring System (ACS), the company has developed an 'AI Finance Decisioning Platform.' This platform uses a customer-matching algorithm to recommend suitable products to users.
Last year, BalanceHero recorded consolidated sales of 146 billion won, representing about 70% growth compared to the previous year. Operating profit also reached 11.7 billion won, proving its profitability. BalanceHero stands out for being the first among domestic fintech companies, including Toss, to generate substantial overseas revenue.
In addition, companies such as Finda (loan comparison) and Banksalad (financial product comparison) are also considering IPOs. Both firms are leveraging their accumulated user data to offer personalized financial product recommendations and comparison services, aiming to differentiate themselves as 'fintech platforms' and persuade investors.
An official from the financial investment industry commented, "It has been over 10 years since the fintech business took root in Korea, and now companies that have secured profitability are targeting stock market listings," adding, "Going forward, achieving outstanding results overseas will be a key factor for IPO success."
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