Kakao Pay Securities obtained an investment trading license on the 13th, expanding its capabilities from securities brokerage to direct underwriting, trading, and sales. Financial authorities approved the company's application for additional financial investment business registration (1-1-1 Investment Trading/Securities) on the 1st. The license enables the fintech firm to leverage its retail user base alongside investment banking operations, marking a structural shift in South Korea's securities market where digital platforms increasingly compete with traditional brokerages.
Kakao Pay Securities Obtains Investment Trading License
Kakao Pay Securities announced on the 13th that it acquired an investment trading (securities) license. The company has built its retail user base primarily through brokerage services. With the new license allowing product underwriting and supply using proprietary capital, the firm now operates an integrated structure linking retail and investment banking businesses.
License Enables IPO Underwriting and Public Offering Services
Kakao Pay Securities identified initial public offering (IPO) underwriting as the most anticipated area enabled by the license. The underwriting capability establishes the legal foundation for public offering subscription services. The company positions this as a core link for new user acquisition and IB-retail integration.
Retail Product Lineup Expands with Bond Trading and Fractional Shares
The license broadens the product lineup available to retail users, including retail bond trading and domestic/overseas fractional stock trading. The approval also enables sales and trading (S&T) business expansion, exchange-traded fund (ETF) liquidity provider participation, and diversified bond management — all revenue streams utilizing proprietary capital.
CEO Outlines Strategy for Integrated IB-Retail Model
Shin Ho-chul, CEO of Kakao Pay Securities, stated: "With this investment trading license, we have established a foundation to advance beyond brokerage into a comprehensive securities firm that directly underwrites and supplies products. We will combine our large-scale retail user base with IB capabilities to create differentiated synergies unique to Kakao Pay Securities."
Toss Securities Applies for Limited Trading License
Toss Securities, another fintech firm, has applied only for an investment trading license related to fractional trading, excluding underwriting operations.
FAQ
What did Kakao Pay Securities obtain on the 13th?
Kakao Pay Securities obtained an investment trading (securities) license on the 13th, enabling the company to perform direct underwriting, trading, and sales of securities beyond its previous brokerage-only operations.
Why is IPO underwriting significant for Kakao Pay Securities?
IPO underwriting provides the legal foundation for public offering subscription services, which the company views as a core mechanism for attracting new users and linking its investment banking capabilities with its retail customer base.
How does Toss Securities' application differ from Kakao Pay Securities' license?
Toss Securities applied only for an investment trading license related to fractional stock trading, excluding underwriting operations, while Kakao Pay Securities obtained full investment trading authorization including IPO underwriting capabilities.
