Kakao Pay Buys Out Kakao Pay Securities for KRW 173 Billion, Ending Dual-Listing Overhang and Clearing Path for Stablecoin Push
Kakao Pay Corp. (377300.KS) is set to absorb its brokerage arm, Kakao Pay Securities, as a wholly owned subsidiary in a KRW 172.98 billion (approximately USD 124 million) share buyout, removing a structural concern that has weighed on the parent's valuation and positioning the fintech group to accelerate entry into stablecoins and security token offerings (STOs).
Deal Mechanics
Kakao Pay will purchase 2,914,652 remaining shares in Kakao Pay Securities at a total consideration of KRW 172.98 billion (approx. USD 124 million), lifting its ownership from 72.93% to 100%. The transaction is scheduled to close on 20 July 2026, following board approvals already secured.
The deal eliminates a minority shareholder base at the securities subsidiary whose separate interests had complicated group-level capital allocation and slowed strategic execution.
Resolving Dual-Listing Friction
The buyout directly addresses market criticism that Kakao Pay and its partially listed affiliate created overlapping business lines — a configuration Korean investors have long termed "중복상장" (dual listing). With Kakao Pay Securities now set to become wholly owned, group decision-making cycles are expected to shorten, and future capital-markets products, including upcoming digital-asset offerings, can be co-engineered without cross-shareholder negotiation.
Kakao Pay framed the transaction as "protecting shareholder value" and "enhancing operational stability" — standard language in Korean chaebol-affiliate absorptions that typically precedes an uptick in cross-entity product bundling.
Third Subsidiary Folded Since 2023
The announcement continues a restructuring campaign Kakao Pay began in 2023:
| Date | Entity | Action |
|---|---|---|
| July 2023 | Kakao Pay Insurance | Converted to wholly owned subsidiary |
| January 2025 | Paymint | Converted to wholly owned subsidiary |
| July 2026 (planned) | Kakao Pay Securities | Full absorption for KRW 173 billion |
The pattern signals Kakao Pay is reducing the friction of a multi-entity fintech stack ahead of a major product cycle.
Stablecoin and STO as Catalyst
By fully integrating Kakao Pay Securities — which holds investment advisory and asset management licenses — Kakao Pay gains a regulated securities conduit through which it plans to launch stablecoin and security token offering (STO) products. Korea's Financial Services Commission is expected to release a domestic STO framework later in 2026, and having a wholly controlled brokerage subsidiary removes one structural prerequisite for product launch.
Korea's stablecoin market is nascent; first-mover positioning is considered strategically valuable given KakaoTalk's installed base of approximately 47 million monthly active users.
Market Backdrop
Kakao Corp. (035720.KS), Kakao Pay's controlling parent, unveiled its Kanana agentic AI assistant at the Korea Privacy and AI Innovation Exhibition (KPAIX 2026) earlier on Monday, signalling that the group is simultaneously pushing AI services and fintech infrastructure. Kakao Pay's share price reaction to the Securities absorption was not immediately available at publication.
Sources: Etnews (June 23, 2026), Yonhap News Agency (June 23, 2026)
