Financial Services Commission Approves Major Shareholder Change of Kakao Pay Baro Investment Securities

[Asia Economy Reporter Ji-hwan Park] Kakao has completed the procedures to enter the securities business.

On the 5th, the Financial Services Commission announced at its regular meeting that it approved Kakao Pay's application for a change of major shareholder of Baro Investment Securities. In April, Kakao Pay acquired 60% of the shares of Baro Investment Securities and applied for approval of the change of major shareholder under the Act on the Corporate Governance of Financial Companies.

The Financial Services Commission explained, "Based on the Financial Supervisory Service's review results regarding the approval requirements under the governance laws, Kakao Pay meets all legal requirements such as financial soundness, debt ratio, and the major shareholder's social credit."

Regarding Chairman Beom-su Kim of Kakao being under criminal litigation for alleged violations of the Fair Trade Act, it was judged that the review would not be significantly affected considering the Fair Trade Commission's resolution and the first and second trial rulings of the court.

A Financial Services Commission official stated, "Previously, if a criminal trial was ongoing against a major shareholder, the review process was uniformly suspended until the final court ruling, and the approval decision was made based on the severity of the legal violation determined by the confirmed ruling. However, if there are significant changes such as court rulings, the need to suspend or resume the review will be examined as necessary depending on the case."

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