Kakao Bank to acquire 100% stake in Masten Capital, enter installment finance sector

Kakao Bank announced Thursday it is entering the capital finance sector, accelerating its push to become a comprehensive financial platform.

The bank disclosed Thursday that it plans to acquire a 100 percent stake in Masten Capital. The acquisition is part of Kakao Bank's corporate value enhancement plan, aimed at expanding into non-banking credit services to build a sustainable growth foundation.

Masten Capital is a specialized credit finance company established in 2022 through a joint investment by Masten Investment Management and NH Investment Securities, and operates in lease finance and corporate finance. Kakao Bank plans to complete the acquisition by year-end at the earliest, securing the license and operational infrastructure needed to enter the capital finance business.

Through the acquisition, Kakao Bank will expand its business portfolio into non-banking credit. The bank expects to bring its accumulated digital finance capabilities and technology to the capital market, transforming traditionally in-person capital services into more accessible and convenient offerings.

Kakao Bank plans to expand its presence in the capital finance sector in stages, starting with installment finance. In the near term, it will focus on building a stable business foundation while pursuing the digital transformation of the auto finance market through partnerships with various players, including automotive retail platforms. The bank will then broaden its credit portfolio into leasing and rental, as well as corporate finance and investment finance, while contributing to the expansion of productive lending.

"We aim to extend our accumulated digital finance innovation and expertise into the capital finance sector, delivering new financial experiences across diverse areas closely tied to customers' everyday lives," Kakao Bank said. "Through phased business expansion, we will strengthen productive finance, enhance platform competitiveness and capital efficiency, and work to increase corporate value."

Meanwhile, Kakao Bank had earlier filed a trademark application for "KaBank Capital" with the Korea Intellectual Property Rights Information Service (KIPRIS). The designated service categories include venture capital finance, revolving loans, secured loans, venture capital investment fund services, auto loan brokerage and auto installment sales finance.