Kakao Pay Securities is pushing to issue tokenized securities so that US investors can trade South Korean stocks 24 hours a day without time-zone constraints. In collaboration with Siebert Financial, a Nasdaq-listed US company, the firm plans to launch the service in the first half of next year. Concurrently, it is accelerating its retail strategy with the introduction of fractional trading for domestic stocks in August and the launch of stock services within the KakaoBank app.
Shin Ho-chul, CEO of Kakao Pay Securities, outlined these plans at a press conference held at the Conrad Seoul in Yeouido on the 23rd. “Since signing a memorandum of understanding in May, working-level teams from Kakao Pay Securities and Siebert have been developing concrete plans through weekly conference calls,” Shin said. “Moving beyond a B2B model where an overseas broker simply intermediates Korean stocks, we will integrate Kakao Pay Securities’ content, user experience (UX), interface (UI), and community capabilities into Siebert, connecting US investors so they can properly understand the value of Korean companies.”
Notably, Siebert proposed tokenizing Korean stocks to dismantle the time-zone barrier between South Korea and the US, and the plan is currently under review within the US regulatory system. “If tokenization is implemented, real-time settlement (T+0) becomes possible, offering the significant advantage of allowing US investors to sell Korean stocks and immediately recover their funds,” Shin said. However, he stressed, “Concerns also exist that faster capital movement could increase volatility in the domestic stock market, so we will proceed cautiously while communicating closely with South Korean financial authorities from a regulatory perspective.”
The collaboration between Kakao Pay Securities and Siebert is drawing increased attention amid a global trend, with the New York Stock Exchange (NYSE) and Nasdaq pushing for 24-hour stock trading within the year. Kakao Pay had attempted to acquire a 51% stake in Siebert for approximately 103.9 billion won (approximately $70.8 million) in April 2023 to secure management control. However, due to legal risks involving Kakao founder Kim Beom-su, Siebert terminated the contract in December of the same year, leaving Kakao Pay as the second-largest shareholder with only the initially acquired 19.9% stake. Regarding this, Shin stated, “Regardless of the management control acquisition, the strategic trust and cooperative relationship between the two companies remains very solid.”
Fractional Trading and KakaoBank Integration from August… Accelerating Retail Market Push
Kakao Pay Securities is also significantly expanding its services for individual investors. “Our core customer base consists of relatively young investors with limited stock trading experience,” Shin said. “To eliminate the barrier of investing tens of millions of won, we will fully introduce fractional trading for domestic stocks starting in August.”
In the same month, the company will expand its channels to allow direct stock trading via Kakao Pay Securities within the app of KakaoBank, South Korea’s largest internet-only bank. “The key is to help novice investors who consistently buy 10,000 won (approximately $6.81) worth of stocks daily grow into healthy asset owners after six months or a year,” Shin emphasized. Kakao Pay Securities currently holds over 8.5 million stock accounts, with 100,000 to 200,000 new accounts being created monthly in conjunction with the Kakao Pay app.
When asked about the gap in mobile trading systems (MTS) with competitor Toss Securities, Shin replied, “We are in a catch-up phase due to a later launch of our stock service. As we begin to fully leverage the Kakao ecosystem, we are experiencing high growth, with an average annual revenue growth rate of 75% over the past three years.” He expressed confidence, stating, “With our overwhelmingly lower customer acquisition cost (CAC) compared to competitors as a strength, we will soon catch up and surpass them.”
Expanding IB Business with IPO Subscriptions and Venture Capital Investment
Having obtained its full investment trading license on July 1st, Kakao Pay Securities also fleshed out its blueprint for the investment banking (IB) business. “For the next 6 to 12 months, we plan to focus on IPO underwriting and subscription services, as well as venture capital investments in startups,” Shin said. “By jointly leveraging the group’s rich startup network, including Kakao Ventures and Kakao Investment, we will create an ecosystem that discovers promising companies and supports them through to listing.”
In the mid to long term, the company plans to expand into sales and trading related to exchange-traded funds (ETFs), where retail investor trading demand is high, to maximize synergies between its retail and IB divisions. Regarding funding plans, Shin drew a line, stating, “Kakao Pay Securities has no separate IPO plans of its own. Our current capital adequacy ratio is excellent, and we recorded an operating profit in the first quarter, demonstrating solid cash generation, so there is no urgent need for a rights offering or external funding.”
Unconventional Moves: AI Agents and Stock Gifts for Newlyweds
Kakao Pay Securities is also preparing investment services utilizing artificial intelligence (AI). “While investment judgment and decisions are made by the customer, the most critical issue is whether they are well-informed,” Shin explained. “We will create an agent that explains the risks and potential returns, continuously guiding customers to make sound decisions.” The AI agent is being considered for integration not only into messenger services but also into KakaoTalk, with some features expected to be unveiled by the end of this year.
Shin also explained the unique organizational structure of placing the research division under the ‘AI Service Center’ rather than as an independent center. “In the age of information overload, the ability to curate the truly necessary information for customers from the flood of data is more important than analysts unilaterally producing reports,” he said. “We will introduce ‘explainable AI’ within the year that transparently guides investment risks and expected returns at the customer’s level, instead of using difficult financial jargon.”
An unconventional marketing campaign was also unveiled at the press conference. Kakao Pay Securities plans to give domestic stocks worth 50,000 won (approximately $34.07) per person, up to a maximum of 100,000 won (approximately $68.14) per couple, to couples who register their marriage during 2026. Eligible applicants are customers who complete their marriage registration between January 1 and December 31, 2026, and can submit their marriage certificate issued via KakaoTalk Wallet to Kakao Pay Securities from the 22nd of this month until January 10, 2027.
A ‘100,000 won Stock Gift for All Newborns in 2027’ campaign was also announced. “Estimating the annual number of births at around 200,000, we expect an annual budget of approximately 20 billion won (approximately $13.6 million),” Shin said. “While it is a significant sum, it is a budget well worth shouldering if it serves as a priming water, allowing future generations to grow as members of the capital market from the moment they are born and receive proper financial education.”
The major business plans and timelines unveiled by Kakao Pay Securities on this day are summarized as follows.
Business AreaKey DetailsTimelineDomestic Fractional Stock TradingEliminating minimum investment amount barriersAugust 2026KakaoBank App IntegrationStock trading service within the KakaoBank appAugust 2026K-Stock Tokenization24-hour trading in collaboration with US SiebertH1 2027 (Target)AI Investment AgentPersonalized investment information guidanceEnd of 2026 (Partial features)IPO SubscriptionNew business based on full investment trading licenseFocus within 6-12 monthsNewlywed Stock Gift50,000 won per person, max 100,000 won per coupleApplications: July 22, 2026 – Jan 10, 2027Newborn Stock Gift100,000 won worth for all babies born in 20272027 onwards
The results of preemptive investment in IT infrastructure were also highlighted. “Since our launch, we have invested a cumulative total of over 200 billion won (approximately $136.3 million) in IT infrastructure, including servers and system development,” Shin explained. “While IT expenses were high to cope with rapid customer growth, as revenue has grown 75-100% annually, the proportion of fixed IT costs relative to total revenue has halved compared to three years ago, achieving economies of scale.”
Kakao Pay Securities’ aggressive moves are drawing attention as a differentiated ecosystem strategy amid intensifying retail competition among domestic securities firms. In particular, the push for tokenized securities, aligning with the global 24-hour trading trend, is seen as an attempt to dramatically improve foreign investors’ access to South Korea’s capital market. However, significant challenges remain, including regulatory approval from South Korean financial authorities and concerns over market volatility.