Kakao Pay lost money in 2023, but foreign transactions skyrocketed

Kakao Pay reported a net loss of 25.2 billion won in 2023 despite a significant increase in foreign transactions. The company plans to expand its offline payment business this year.

[KAKAO PAY]

Kakao Pay swung to red in 2023, reporting a net loss of 25.2 billion won ($19 million), compared to the previous year’s surplus of 26.8 billion won, according to its regulatory filing Tuesday.

The figure missed the analyst forecast of 17.2 billion won in net loss compiled by market tracker FnGuide.

The company’s operating figure also remained in the red, recording an annual operating loss of 56.6 billion won for the year, bigger than the previous year’s loss of 45.5 billion won.

The annual operating loss was worse than the market expectation of 47.5 billion won.

Revenue rose 18 percent on year to 615.4 billion won, slightly missing the forecast of 616.6 billion won.

The average number of monthly active users came in at 23.1 million. Users held a total balance of 1.24 trillion won as of the end of last year, up 48 percent from a year prior. Transaction volume from Korean users overseas rose 34 percent on year, while that of foreigners in Korea rose 846 percent.

Kakao Pay plans to expand its offline payment business this year. Payment through Samsung Pay will be enabled in its app starting April, according to the company.

Kakao Pay’s bid to acquire Siebert Financial, a New York-based financial company, fell through recently amid persistent concerns surrounding Kakao’s alleged stock manipulation during its acquisition of K-pop agency SM Entertainment.

Kakao Pay's share price dipped 1.07 percent on Tuesday to close at 46,300 won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]