Internet-only lender targets full takeover by year-end
Kakao Bank said Thursday it plans to fully acquire Mastern Capital, marking its first major move into nonbank lending as Korea’s largest digital-only lender seeks to broaden its financial services portfolio.
The bank’s board approved the purchase Wednesday of all 5 million shares in Mastern Capital for 24.1 billion won ($15.6 million), according to a regulatory filing.
Founded in 2022 through a joint investment by Mastern Investment Management and NH Investment & Securities, Mastern Capital is a specialized credit finance company offering leasing, corporate finance and other services.
Kakao Bank said it aims to complete the takeover as early as the end of this year, while securing the licenses and operational infrastructure needed to enter the capital finance business.
The acquisition is part of Kakao Bank’s corporate value enhancement plan and marks its first expansion into nonbank lending. The bank plans to use the digital finance capabilities and technology it has built since its 2017 launch to improve convenience and drive innovation in a sector that still relies heavily on in-person processes.
Kakao Bank said it will start with installment financing before gradually expanding into other capital finance businesses. In the near term, it plans to build a stable business base and work with partners, including auto distribution platforms, to accelerate the digital shift in auto finance.
“We aim to extend the digital financial innovation technology and expertise we have accumulated into the capital finance business and provide new financial experiences across various areas closely linked to customers’ daily lives,” a Kakao Bank official said.
jwc@heraldcorp.com