Kakao Pay Reports 27.2 Billion KRW Operating Loss Last Year, Pledges to Return to Its Original Intentions (Update)

[Asia Economy Reporter Buaeri] Kakao Pay announced on the 8th that it recorded sales of 458.6 billion KRW last year, a 61% increase compared to the previous year. However, operating losses continued at 27.2 billion KRW.

Sales in the fourth quarter of last year reached 127.4 billion KRW, a 37% increase year-on-year, with operating losses of 28.8 billion KRW. The company explained that these were due to temporarily incurred stock compensation costs, increased social insurance contributions from stock option exercises, and IPO-related incidental expenses. A Kakao Pay representative said, "Excluding these costs, profit realization from future revenue growth will become visible."

Kakao Pay's annual transaction volume nearly reached 100 trillion KRW, recording 99 trillion KRW, a 48% increase compared to the previous year. The fourth quarter transaction volume grew 32% year-on-year to 26 trillion KRW.

In the financial sector, based on partnerships with 139 financial institutions, annual transaction volume increased by 193%. Annual fund investment transaction volume rose 156%, and loan brokerage transaction volume more than tripled, strengthening the company's position as a financial platform, the company explained.

In the payment sector, annual transaction volume grew 68% compared to 2020, with online payment volume increasing by 67% and offline payment volume by 77%. The remittance sector also grew by 37%.

Amid moral hazard controversies involving management earlier this year, Kakao Pay announced plans to return to basics this year with the business direction "Back to the Basic," aiming to return to its original mindset. Kakao Pay stated, "We will focus on the 'user experience,' which is the driving force of growth."

As part of this, Kakao Pay Securities will open its "Stock Beta Service" to all users starting next week. Users will be able to trade domestic and US stocks in one place. Investment in domestic and US-listed Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs) will also be possible.

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