Kakao Pay to acquire majority stake in Siebert Financial

By Leandra Monteiro

Kakao Pay announced that it has signed a contract to acquire new shares worth approximately $17 million to be issued by Siebert Financial, a New York-based brokerage firm through a paid-in capital increase.

Through this, Kakao Pay plans to secure a 19.9% ​​stake in Siebert. It also plans to acquire an additional 31.1% stake after obtaining approval from shareholders and US regulatory authorities to secure a 51% stake and take over management rights. Meanwhile, the Gebbia Family, the existing major shareholder of Siebert, will remain a major shareholder in the company and cooperate with the management.

Gloria E.Gebbia, the majority shareholder of Siebert and a member of the board of directors, said, “I am very pleased to be able to strengthen business capabilities and growth potential with Kakao Pay through this opportunity.” Based on Pay’s expertise, we will raise our technological capabilities to secure economic resources and expand our core business investments.”

Through this investment, Kakao Pay users who invest in overseas stocks will benefit. the company plans to enhance user convenience through US stock aftermarket service and 24-hour US stock trading support.

Shin Won-geun, CEO of Kakao Pay, said, “With Siebert, which has accumulated more than 55 years of tradition and experience in the US stock market, we can enhance Kakao Pay’s user experience and benefits.” As we expand our business, we will strive to return more benefits to our users.”

It plans to create a new overseas stock trading solution by combining Kakao Pay Securities MTS with user-centered UI/UX and Siebert’s US stock order system to provide to overseas FinTech companies including Southeast Asia. In addition, Siebert serves as a bridgehead for Kakao Pay’s entry into the global market, working together to expand revenue models and enhance user experience.