Decided to convert to a financial holding company in China
Good news for Kakao, which has been suspended for judging
The possibility of resuming the examination next month as soon as possible
As Kakao Pay’s major shareholder, Ant Group of China, decided to convert to a financial holding company in coordination with the Chinese financial authorities, a green light was given to Kakao Pay’s entry into the My Data business.
Kakao’s financial subsidiary, Kakao Pay, is excluded from the review by the Korean financial authorities due to the issue of eligibility for major shareholders. Eventually, it is expected to escape from the crisis of having to suspend the asset management service as it does not receive the My Data (personal credit information management) business license. As the conflict between the Chinese financial authorities and the Ant Group has ended and the uncertainty in sanctions has been resolved, the Korean financial authorities’ review of Kakao Pay is expected to resume as early as February. This means that the likelihood that Kakao Pay will receive a My Data business license has increased that much.
A high-ranking official of the Financial Services Commission said on the 29th, “Antegroup has submitted a plan to convert the financial holding company system under the direction of the Chinese financial authorities. If true, the legal uncertainty is expected to be resolved,” said a Chinese central banker. I need proof of the People’s Bank.” It is explained that if there is a guarantee from the Chinese financial authorities that it has not sanctioned Ant Group, Kakao Pay, like other 28 financial companies and companies entering the financial field, can obtain a My Data business license.
From the perspective of Ant Group, which started from fintech (a company that combines information technology (IT) and finance), the transition to a financial holding company may be a bad thing, but the Korean financial authorities may welcome it more. This is because when becoming a financial holding company, it is subject to direct financial supervision from the Chinese financial authorities in various areas such as business conduct, soundness, and consumer protection, thereby reducing the risk of major shareholders.
According to the Wall Street Journal (WSJ), an economic newspaper in the U.S. the day before, the Ant Group plan is expected to be finalized before the Spring Festival next month after approval by the Financial Safety Development Committee (FSDC) led by Chinese Deputy Prime Minister Liu Hee. do. As a result, there is a possibility that the People’s Bank will respond to the demand for local sanctions by the Korean financial authorities and Kakao Pay right after the Chinese New Year.
Alipay Singapore Holdings, an affiliate of Ant Group, currently owns a 43.9% stake in Kakao Pay. Ant Group is a financial affiliate of Alibaba, the largest e-commerce company in the East, founded by Ma Yun. Ma Yun expressed a critical view of the Chinese financial system when Ant Group’s listing on the Shanghai and Hong Kong stock markets in October last year, but aroused a strong backlash from the Chinese Communist Party, and spent a while with the Ant Group’s listing collapse.
Reporter Yu Hoe-kyung [email protected]