Internet-only lender targets full takeover by year-end
Korea’s leading digital-only lender, Kakao Bank, announced on Thursday its strategic plan to fully acquire Mastern Capital. This marks Kakao Bank’s significant entry into nonbank lending, strategically expanding its diverse financial services portfolio.
According to a recent regulatory filing, Kakao Bank’s board of directors formally approved the purchase on Wednesday. The acquisition involves all 5 million shares of Mastern Capital, valued at 24.1 billion won (approximately $15.6 million).
Established in 2022 through a joint venture between Mastern Investment Management and NH Investment & Securities, Mastern Capital operates as a specialized credit finance company. Its offerings include a range of services such as leasing solutions and corporate finance.
Kakao Bank aims to finalize this strategic takeover by the end of this year. Simultaneously, the digital lender will focus on securing the necessary licenses and developing robust operational infrastructure to successfully enter the burgeoning capital finance business sector.
This pivotal acquisition aligns with Kakao Bank’s broader corporate value enhancement strategy and signifies its initial foray into the nonbank lending market. Leveraging the advanced digital finance capabilities and innovative technology developed since its 2017 launch, Kakao Bank intends to significantly improve customer convenience and spearhead innovation within a financial sector often characterized by traditional, in-person processes.
Initially, Kakao Bank will focus on installment financing, with plans for a phased expansion into a wider array of capital finance businesses. The immediate goal is to establish a stable business foundation and collaborate with key partners, such as prominent auto distribution platforms, to accelerate the essential digital transformation within the auto finance industry.
A Kakao Bank official emphasized their vision, stating, “We are committed to extending our accumulated digital financial innovation technology and expertise into the capital finance business. Our goal is to deliver unparalleled new financial experiences across diverse areas that are intimately connected to our customers’ everyday lives.”
jwc
