KOSPIFinance377300

kakaopay

₩40,150▲ 0.25%2026-10-02 close

Market Cap

₩5.4T

Turnover

₩3.9B

Volume

100,000 shares

Shares out.

140M

PER

72.9×

PBR

3.2×

EPS

₩649

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Second Year of Profit: Operating Leverage Meets the Stablecoin Variable

After its first full-year operating profit in 2025, KakaoPay posted back-to-back record quarters in the first half of 2026, yet much of that profit is tied to its securities arm and market trading volumes, while the stablecoin push still awaits legislation.

1
Consolidated revenue grew from KRW 521.6bn in 2022 to KRW 958.3bn in 2025, and a KRW 50.3bn operating profit in 2025 ended three straight years of losses.
2
Quarterly operating profit rose from KRW 9.3bn in 2Q25 to KRW 58.6bn in 2Q26, lifting the operating margin from 3.9% to 17.5%.
3
The company reported 2Q26 total payment volume of KRW 54.2tn, up 20% year on year, with financial-services revenue overtaking payments for the first time.
4
Its won-denominated stablecoin plan is at the verification stage across issuance infrastructure and distribution, while the Digital Asset Basic Act, the key enabling law, is seen hinging on the September regular parliamentary session.
5
Kakao's planned spin-off places KakaoPay under the surviving entity Kakao X as a techfin affiliate, leaving a governance variable outstanding.

Business structure

KakaoPay is a daily-finance platform booking revenue across three lines: payments, financial services and platform services, with KakaoPay Securities and KakaoPay Insurance as consolidated subsidiaries.

Payments span online merchant checkout, offline QR and barcode payments, overseas payments and remittances; financial services cover loan brokerage, investment and insurance products; the platform line centers on advertising and brokerage of telecom and tax-related services.

In its 2Q26 release, the company cited payment revenue of KRW 141.4bn, up 13%, and 44% growth in the platform segment on advertising and telecom brokerage, alongside digital finance revenue of KRW 175.2bn, up 75%, driven by securities and insurance.

Financial-services revenue exceeded half of the total for the first time, marking the key shift in its revenue mix.

On the user side, management highlighted offline payment monthly users passing 6 million and wider adoption of its proprietary credit model, KakaoPay Score, and points to a payment and remittance base of 40 million users as the core asset for distribution businesses.

Among subsidiaries, the company disclosed KakaoPay Securities revenue of KRW 121.9bn in 2Q26 and KakaoPay Insurance revenue of KRW 25.6bn, more than double a year earlier.

Competition is layered, spanning Naver Financial, Toss and the in-house apps of card issuers and banks; Naver Financial is pursuing a comprehensive share swap with Dunamu to build a digital-asset ecosystem linking search, commerce, payments and blockchain.

On governance, after Kakao's spin-off, KakaoPay and KakaoPay Securities are set to remain, together with KakaoBank, as techfin affiliates under the surviving entity Kakao X.

Earnings trend

Quarterly revenue · Operating profit

₩238.3B₩9.3B25Q2₩238.4B₩15.8B25Q3₩269.8B₩20.8B25Q4₩300.3B₩32.2B26Q1₩335.1B₩58.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩521.7B-₩45.5B2022₩615.4B-₩56.6B2023₩766.2B-₩57.5B2024₩958.4B₩50.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩238.3B	₩9.3B	3.9%
2025Q3	₩238.4B	₩15.8B	6.6%
2025Q4	₩269.8B	₩20.8B	7.7%
2026Q1	₩300.3B	₩32.2B	10.7%
2026Q2	₩335.1B	₩58.6B	17.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩521.7B	-₩45.5B	₩54B	−8.7%	3.0%	74.6%
2023	₩615.4B	-₩56.6B	₩2.5B	−9.2%	0.1%	105.0%
2024	₩766.2B	-₩57.5B	-₩13.7B	−7.5%	−0.7%	131.0%
2025	₩958.4B	₩50.4B	₩45.2B	5.3%	2.4%	173.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On an annual basis, revenue expanded for four straight years: KRW 521.6bn in 2022, KRW 615.3bn in 2023, KRW 766.2bn in 2024 and KRW 958.3bn in 2025. Operating losses persisted at KRW 45.5bn in 2022, KRW 56.5bn in 2023 and KRW 57.4bn in 2024, before the first annual operating profit of KRW 50.3bn in 2025, a 5.3% margin.

Net profit attributable to owners reached KRW 45.2bn in 2025, reversing a KRW 13.7bn loss in 2024.

The quarterly path is sharper: from revenue of KRW 238.2bn and operating profit of KRW 9.3bn (3.9% margin) in 2Q25, operating profit rose for five consecutive quarters to KRW 15.8bn, KRW 20.8bn, KRW 32.2bn and KRW 58.6bn, with margins climbing 3.9% to 6.6%, 7.7%, 10.7% and 17.5%.

Revenue also grew to KRW 300.2bn in 1Q26 and KRW 335.0bn in 2Q26, so profit grew faster than the top line, consistent with fixed-cost leverage taking hold. Bottom-line volatility remains, however.

In 4Q25, owners' net profit was only KRW 4.0bn despite KRW 20.8bn of operating profit, before recovering to KRW 28.4bn in 1Q26 and KRW 40.0bn in 2Q26, showing how non-operating items and minority allocation can swing the net line.

Operating cash flow was KRW 253.1bn in 2023, KRW 127.0bn in 2024 and KRW 118.6bn in 2025, a downtrend despite rising profit, while the debt-to-equity ratio rose from 74.6% in 2022 to 173.7% in 2025, which should be read alongside growing customer deposits and insurance-related liabilities.

The nature of the growth driver also warrants scrutiny: for 2Q26 the company said KakaoPay Securities' custodied assets rose 279% year on year and equity and pension assets 391%, with KRW 4.8tn of net investor inflows and a conversion rate into general stock trading above 30%.

Industry analysis

Korea's simple-payment market has shifted from headline growth to competition over offline penetration, cross-border payments and merchant coverage.

For 2Q26 the company said payment transactions grew 25%, with online up 16% on non-captive merchant volume, offline up 58% on benefit programs, and overseas payments up 21% on inbound travel demand.

The financial segment is sensitive to equity trading conditions; Korea Investment & Securities said in a July 2026 report that the payments unit was growing at double digits both online and offline and that high growth in the financial unit would continue on rising domestic stock market turnover.

Cyclically, the securities subsidiary's earnings track trading value and fund inflows, so growth can decelerate quickly if markets cool.

New-business competition is migrating to won-denominated stablecoins: Kakao and Naver are moving beyond issuance to secure distribution networks linking payments, remittance and investment, shifting the battleground toward actual use cases.

On the regulatory front, the Digital Asset Basic Act covering stablecoin rules and virtual-asset service provider regulation is the fastest-moving item, with the Financial Services Commission discussing introduction as a lawmaker-sponsored bill through the National Assembly's political affairs committee, while a mandated bank majority stake within issuance consortia and reserve-asset standards remain key points of contention.

In short, the industry is extending from payment-infrastructure competition into digital-asset infrastructure, and until the rules are set, even the division of roles among participants is uncertain.

Outlook

Management's stated direction is a rising share of non-payment revenue. CFO Lee Sung-ho said on the May 2026 call that over the medium to long term, non-payment revenue including financial services would exceed half of the total, while also noting the portfolio is heavily exposed to market volatility and regulation.

For securities, the company said on that call that monthly trading users stood at 1.7 million, around sixth in the industry, and targeted more than 2 million by year-end with the aim of reaching the industry's top tier.

The stablecoin effort runs on two tracks: CEO Shin Won-keun said on the August 4, 2026 call that strategic and technical verification of issuance and distribution infrastructure was under way with Kakao affiliates and partners, with licensing and larger distribution volume in view.

On distribution, the plan is a corporate wallet service to improve settlement efficiency for merchants, value-added network operators and payment gateways, extending to cross-border corporate remittance and settlement platforms.

External partnerships are progressing: the company joined a global payment standard foundation aimed at AI-driven automated payments in April 2026 and signed a memorandum of understanding with stablecoin issuer Circle.

On hiring and licensing groundwork, reports say it is recruiting a stablecoin and wallet product manager and issuance and distribution server engineers, with virtual-asset service provider qualification, a prerequisite for issuance, as the backdrop.

Timing, however, depends on legislation: lawmaker Min Byoung-dhug said on September 3, 2026 that a public hearing on the Digital Asset Basic Act would be held in late September regardless of whether the government bill arrives.

Group structure is also set to change, as Kakao plans an extraordinary shareholder meeting on December 17, completion of the split on January 1, 2027, and relisting of Kakao AI and the changed listing of Kakao X on January 27.

Valuation

PER

72.9×

PBR

3.2×

ROE

4.6%

EPS

₩649

BPS

₩14,596

Dividend per share

₩0

Because the earnings base only turned positive in 2025, the current earnings multiple sits well above the average for traditional financials such as banks and insurers and is more comparable to internet and platform names that carry growth expectations.

The shares also trade at a premium to book value, and with no cash dividend paid, the shareholder-return yield from dividends is below the sector average.

Owners' net profit for the most recent four quarters totals roughly KRW 87.8bn, far above the full-year 2025 figure, meaning the earnings denominator is shifting quickly, which itself complicates multiple comparisons.

For reference, Kiwoom Securities said in a May 7, 2026 report that its KRW 130,000 target price was the present value of an estimated KRW 860.4bn in 2030 owners' net profit at a 30 times price-earnings ratio and a 10% annual discount rate, illustrating that one strand of market debate values profits several years out rather than current earnings.

On the other side, the InvestingPro service noted the company trades at a high price-earnings multiple, suggesting investors expect continued growth.

Ultimately the multiple will be tested less by unconfirmed businesses such as stablecoins and agentic payments and more by how repeatable today's profit, heavily reliant on the securities subsidiary, proves to be.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Fixed-Cost Leverage Is Showing Up in the Numbers

Quarterly operating profit rose from KRW 9.3bn in 2Q25 to KRW 58.6bn in 2Q26 while revenue grew from KRW 238.2bn to KRW 335.0bn. Profit growing far faster than revenue points to a platform-style cost structure taking effect.

Management said a profitability-focused operating structure had settled in, reflecting data-driven personalized services, stronger user lock-in and efficiency synergies at subsidiaries.

Compared with the 5.3% full-year 2025 operating margin, the recent double-digit quarterly margin suggests room for further improvement in the margin itself.

Subsidiary Earnings Contribution Kicks In

The financial segment has broadened from loan brokerage into investment and insurance, changing the revenue mix.

The company said investment and insurance grew 99% and 86% respectively, driving results, and in insurance that new products such as pet insurance and strong phone insurance, plus more regular-premium new contracts, eased seasonality, with 2Q direct premiums up 66% and regular premiums up 134%.

Reduced reliance on payments alone widens the revenue base. A higher share of regular premiums also tends to dampen quarter-to-quarter swings.

40 Million Users and a Stablecoin Distribution Option

In stablecoins, the value of distribution channels is drawing attention separately from issuance licenses. The company said it is preparing to place stablecoins in the wallets of 40 million users for remittance, payments and investment, expecting lower operating costs and a new growth driver.

At group level, the incoming Kakao X chief executive said KakaoBank, KakaoPay and KakaoPay Securities together hold a growth agenda to become the leading player in virtual assets and stablecoins. Should regulation advance, owning distribution infrastructure could determine the scope of participation.

Bear factors

Expectations Already Embedded in the Earnings Multiple

The absolute profit base of a company that only turned annually profitable in 2025 remains modest. Against KRW 45.2bn of owners' net profit in 2025 and roughly KRW 87.8bn over the most recent four quarters, the current earnings multiple sits well above averages for traditional financials.

InvestingPro noted the shares trade at a high price-earnings multiple, suggesting investors expect continued growth. If growth decelerates, the expectation premium rather than the earnings base is what faces adjustment pressure first.

Dependence on the Securities Arm and Trading Volumes

Much of the recent profit improvement leans on securities growth. The company said net investor inflows of about KRW 4.8tn across domestic and overseas markets drove that growth, a variable that can reverse if market conditions turn.

The 4Q25 quarter, when owners' net profit was just KRW 4.0bn despite KRW 20.8bn of operating profit, is another reason to test earnings stability. Payments revenue growth of 13% in 2Q26, slower than the financial segment, also shows how concentrated the profit center has become.

Stablecoin Rules Are Not Yet Written

The legislation underpinning new-business expectations has been repeatedly delayed. The government and ruling party initially aimed to finalize a consolidated bill in March but pushed it back amid the political calendar, and it is unclear whether key disputes can be settled before the September plenary session.

The disputes bear directly on business design: a mandated bank majority stake within won stablecoin issuance consortia is under discussion, which could limit the role of non-bank participants. Even if a bill passes, subordinate decrees must follow, so actual implementation is expected to require additional time.

Risk factors

Regulation and Policy

The content and timing of the Digital Asset Basic Act will shape the scope of new businesses. Industry participants say that unless a bill is introduced by September, passage within the year is impossible, as the National Assembly's October audit and November-December budget review leave insufficient time.

Payments, loan brokerage and insurance distribution each sit under separate supervisory regimes, so changes to fees or sales rules could feed directly into results. Regulatory uncertainty can also delay the payback on front-loaded spending such as investment and hiring.

Earnings Volatility and Balance Sheet

The quarterly net line has at times diverged from the operating trend. In 4Q25, owners' net profit was KRW 4.0bn against KRW 20.8bn of operating profit, and for full-year 2025, KRW 45.2bn of the KRW 55.7bn net profit was attributable to owners, showing minority effects.

Operating cash flow fell from KRW 253.1bn in 2023 to KRW 118.6bn in 2025, while the debt-to-equity ratio rose from 74.6% in 2022 to 173.7% in 2025.

Customer deposits and insurance liabilities are mixed into that figure, so simple comparisons are difficult, but whether subsidiaries need further capital remains an item to monitor.

Governance and Parent-Company Variables

The parent's structure is being reorganized. On August 21, Kakao's board approved a spin-off into a new entity, Kakao AI, covering KakaoTalk, AI, advertising and commerce, and a surviving entity, Kakao X, managing techfin, content and mobility affiliates.

Market reaction has been mixed: LS Securities analyst Sun Yu-jin attributed Kakao's discount and multiple compression mainly to delays in AI service sophistication and monetization, and judged that the spin-off would have limited immediate effect in resolving the discount.

The labor union has opposed the plan, demanding joint bargaining and arguing there was insufficient prior consultation on employment and working conditions. Whether the largest shareholder's post-split capital allocation translates into demands for subsidiary dividends or capital injections is worth monitoring.

What to watch next

Late September 2026
The Digital Asset Basic Act public hearing flagged by the ruling party and whether a consolidated government-party bill is introduced. How issuer eligibility and reserve requirements are settled will determine the breadth of KakaoPay's participation in stablecoin issuance and distribution.
Early November 2026 (3Q results expected)
Whether 3Q26 revenue and operating profit sustain a double-digit operating margin, and whether the financial segment holds the majority revenue share seen in 2Q. The KRW 58.6bn of 2Q26 operating profit is the reference point.
End of December 2026
Whether KakaoPay Securities meets its stated year-end target of more than 2 million monthly trading users. As securities is the main axis of recent profit improvement, user and net-inflow metrics serve as leading indicators of earnings durability.
December 17, 2026
Kakao's extraordinary shareholder meeting to approve the spin-off. Approval would set in motion the transfer of KakaoPay's largest-shareholder position to the surviving entity Kakao X, and reveal the direction of subsidiary capital allocation.
January 27, 2027
The scheduled relisting of Kakao AI and changed listing of Kakao X. How the market values the holding-style Kakao X connects to debate over the carried value of its KakaoPay stake and the group's capacity to fund new businesses.

Overall view

KakaoPay's profit structure changed materially from 2025. Revenue rose from KRW 521.6bn in 2022 to KRW 958.3bn in 2025, three years of operating losses gave way to a KRW 50.3bn profit in 2025, and quarterly operating profit expanded from KRW 9.3bn in 2Q25 to KRW 58.6bn in 2Q26 as the margin climbed from 3.9% to 17.5%.

The improvement, however, leans heavily on growth at the securities subsidiary and market fund inflows, contrasting with the more measured payments growth of 13% revenue increase in 2Q26.

The company's next narrative is a majority non-payment revenue mix plus won stablecoin issuance and distribution infrastructure, which, as management describes it, is still at the stage of strategic and technical verification rather than confirmed revenue.

On policy, whether the Digital Asset Basic Act clears the September regular session and how issuer eligibility is defined will shape the business scope; on governance, the parent's spin-off timetable spans December 2026 and January 2027.

The earnings multiple sits well above averages for traditional financials with no cash dividend paid, so the bull case rests on the durability of operating leverage while the bear case rests on market dependence and legislative delay.

The decision points are therefore whether the next quarter sustains a double-digit margin and the financial segment's revenue share, and whether stablecoin legislation acquires a real timetable. This report is for informational purposes and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.