KakaoPay Overcomes MyData Hurdle... Facing the "Fateful June" Soon

June MyData Service Outlook
IPO Preliminary Review Scheduled in the Same Month

Ryu Young-jun, CEO of Kakao Pay

[Asia Economy Reporter Kiho Sung] Kakao Pay has lifted the shackles of the suspension of its MyData (personal credit information management) review. It has been three months since the service was halted. The financial sector expects Kakao Pay to resume its MyData service as early as June. Additionally, the preliminary review for listing on the stock exchange, the first hurdle for the initial public offering (IPO), and the preliminary approval for a digital non-life insurance company are scheduled for next month, making it the first test for Kakao Pay to expand its platform.

According to the financial sector on the 13th, the Financial Services Commission held its 9th regular meeting the day before and granted preliminary approval for Kakao Pay to operate its MyData business. The commission judged that Kakao Pay had been providing similar MyData services and met the requirements under the Credit Information Act, including major shareholder eligibility, allowing it to operate the MyData service.

The Financial Services Commission expects Kakao Pay to apply for the final approval within this month. Since the final approval review process usually takes about a month, if the application is submitted by the end of May and there are no major issues, Kakao Pay’s MyData service could resume within June.

Kakao Pay is feeling relieved after overcoming a major hurdle. A Kakao Pay official stated, "We plan to complete the final approval and accelerate the resumption of asset management services quickly," adding, "We will do our utmost to evolve into an asset management service that connects users with the optimal products and services at the moment they need them."

With the green light for the MyData service, Kakao Pay’s IPO is also expected to proceed smoothly. Kakao Pay submitted its application on the 26th of last month, and if there are no delays in the review process, it is expected to receive the review results around the end of June. Additionally, it has been awaiting the results after applying for preliminary approval to establish a digital non-life insurance company with the Financial Services Commission at the end of last year. Although delayed compared to the schedule, the industry expects the results to be announced around late May or June.

If the important events in June proceed smoothly, Kakao Pay’s growth potential is expected to increase further. This year, Kakao Pay plans to launch postpaid payment and enter the comprehensive payment business in the second half of the year, as well as introduce the Kakao Pay Securities Mobile Trading System (MTS) and Kakao Insurance.

An industry insider said, "With the resumption of the MyData service, the IPO, which is expected to reach up to 18 trillion won, will also proceed smoothly," adding, "The implementation of the comprehensive payment business, the biggest event in the second half of this year, will see Kakao Pay take the lead based on the know-how it has accumulated so far."

This content was produced with the assistance of AI translation services.