Kakaopay Securities Obtains Investment Trading License, Now Eligible to Lead IPOs
Direct Underwriting, Trading, and Sales of Securities Now Possible
Foundation Laid for Business Expansion Including IPO Subscription
Kakaopay Securities has obtained a license for investment trading (securities), paving the way for business expansion, including acting as a lead manager for initial public offerings (IPOs).
According to Kakaopay Securities on July 13, the financial authorities resolved on July 1 to approve the company's application for an additional registration of a financial investment business unit (1-1-1 Investment Trading·Securities). With this, Kakaopay Securities has acquired the authority to directly underwrite, trade, and sell securities, extending beyond just intermediary brokerage.
This approval is expected to serve as a turning point connecting Kakaopay Securities' strengths in retail and investment banking (IB) businesses. Previously, the company focused on brokerage services to build a retail user base, but it now has a structure in which the two business areas are connected, as it can underwrite and supply products using its own capital.
The company can now also act as a lead manager and underwriter for IPOs. With the ability to underwrite, a legal foundation has been established for public offering subscription services. The company sees this as a key link connecting IB and retail, as well as a means of attracting new users.
The lineup of products for users will also expand to include retail bond trading and fractional trading both domestically and internationally. In addition, the company will be able to diversify revenue streams by expanding its sales and trading (S&T) business, participating as a liquidity provider (LP) for exchange-traded funds (ETFs), and diversifying bond management using its own capital.
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Shin Hocheol, CEO of Kakaopay Securities, stated, "This investment trading license has laid the foundation for us to evolve from an intermediary into a comprehensive securities firm that directly underwrites and supplies products," adding, "We will create a differentiated synergy unique to Kakaopay Securities by combining our large retail user base and IB capabilities."
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