Kakao Pay affirms its confidence in AliPay



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Kakao Pay affirms its confidence in AliPay

Kakao Pay CEO Ryu Young-jun answers questions at an online press conference Monday in Seoul.  Yonhap
Kakao Pay CEO Ryu Young-jun answers questions at an online press conference Monday in Seoul. Yonhap

By Kim Yoo-chul

A senior Kakao Pay executive dismissed fears that its stock price might suffer from an impending market excess because its No.2 shareholder, China’s AliPay, will not divest its stake in the Korean company.

“I am not 100% sure of our shareholders. However, from the very beginning AliPay has cooperated with Kakao Pay on several fronts as a strategic investor. We do not believe AliPay will get rid of its holdings in Kakao Pay after the initial public offering (IPO). Therefore, the number of tradable share volumes will be limited. There will be no over-indebtedness problem, “Kakao Pay CEO Ryu Young-jun said Monday. , at an online press conference.

Investors are mainly focusing on the volume of shares held by AliPay that will be discharged after the IPO, as the Chinese giant owns 37.2 million shares, or 28.47% of Kakao Pay. AliPay is an online payment platform currently operated by Chinese company Ant Financial.

Regarding the details of his business expansion plans beyond the Korean Peninsula, the CEO said Kakao Pay plans to expand into China, Europe and Southeast Asian countries, although he did not specify when and how.

“Kakao Pay receives many requests for collaboration from countries in Southeast Asia and the Middle East. We will carefully consider the suggested business proposals we received after the IPO, ”said the company executive.

As widely expected, Kakao Pay plans to raise 1.53 trillion won on its IPO after valuing the shares at the top of a marketed range. Kakao Pay was backed by Jack Ma’s Ant Group just months after its sister company KakaoBank raised $ 2.3 billion in Korea’s second IPO so far this year.

Asked about the intended use of the funds that will be raised through the IPO, Ryu said most of the amount would be used as a source of acquisitions, stock purchases of targeted companies, strengthening of companies. assets for digital insurance companies and operating needs.

He maintained his silent stance on the assessment of the government’s recent campaign to curb “big tech” companies. The country’s main antitrust regulator was taking action to tighten regulations on the country’s fastest growing online platforms, with lawmakers and senior government officials labeling local big tech companies like Kakao and Naver as symbols of greed .

During the National Assembly’s inspection of government agencies this year, Kakao and Naver repeatedly pledged to implement much stronger measures to address market monopolization issues and to come up with additional plans to help traders. and local partners to survive.

Kakao Pay will receive requests for subscription of public shares from private investors from October 25 to 26, after the constitution of a portfolio with institutional investors. The list is set for November 3.


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