TL;DR - Kakao Pay Securities (parent: 377300.KQ) CEO targets 20 million domestic investors by 2028 — from ~8M today - K-Stock Globalization: U.S. retail investors to access Korean equities through Siebert Financial (NASDAQ: SIEB) - Investment dealing license secured July 1, 2026 — enables IPO underwriting, bond trading, and S&T - 24/7 tokenized Korean stocks explored as STOs; pending SEC and FSC approval - Kakao Pay (377300.KQ): ₩49,100 (-1.7%); consensus analyst target ₩57,110 (+39% upside)
Part A: The Announcement
CEO Shin Ho-cheol of Kakao Pay Securities laid out an aggressive three-year expansion plan on July 23, 2026, targeting a doubling of the platform's approximately 8 million user base to 20 million domestic investors — and for the first time, explicitly targeting American retail investors as a growth vector.
Three Strategic Pillars
| Pillar | Details | Status |
|---|---|---|
| K-Stock Globalization | U.S. investors access Korean equities via Siebert Financial (SIEB) | In progress |
| 1-in-1 AI Investment Agent | Personalized AI with explainable AI (XAI) + knowledge graphs | Launching 2026 |
| Tokenized 24/7 Trading | STOs enabling Korean stocks to trade round-the-clock for foreigners | Pending regulatory approval |
Siebert Financial Partnership
Kakao Pay Securities first partnered with Siebert Financial Corp. (NASDAQ: SIEB) in August 2025. Phase 1: Siebert CIO Mark Malek's daily U.S. market commentary flowed to 8 million Korean investors four to five times per week through Kakao Pay's "Very Useful Investment News" channel.
Phase 2, announced July 23, reverses the flow: Siebert's U.S.-regulated brokerage will serve as the access layer for American retail investors to trade Korean-listed equities. The companies are jointly exploring a Securities Token Offering (STO) framework compliant with U.S. SEC regulations that could enable near-24-hour trading of Korean stocks for foreign clients. No launch date has been set, and regulatory approval in both jurisdictions remains pending.
Investment Dealing License (July 1, 2026)
Kakao Pay Securities received an investment dealing license on July 1, 2026 — enabling it to underwrite IPOs, trade bonds with proprietary capital, provide fractional shares, and act as an ETF liquidity provider. CEO Shin called this "a turning point that connects retail and investment banking businesses."
Equity-Gifting Program
The company also introduced social equity measures: ₩100,000 (~$67) in securities for newlyweds, and — from 2027 — ₩100,000 in stocks for every newborn registered on the platform.
Part B: Analysis — What This Means for Investors in Korean Stocks
A New U.S. Onramp to KOSPI/KOSDAQ
For international investors, the Siebert-Kakao Pay channel adds a fourth regulated access route to Korean equities, alongside existing options:
| Route | Provider | Availability | Notes |
|---|---|---|---|
| ADR | OTC Markets / major brokers | Now | Limited: Samsung, KB, Shinhan ADRs only |
| EWY ETF | BlackRock iShares | Now | Broad Korea exposure, no single-stock access |
| IBKR Direct KRX | Interactive Brokers | May 2026+ | Full KRX access, requires funded IBKR account |
| Kakao Pay / Siebert | Siebert Financial (SIEB) | 2026-2027 (pending) | U.S. regulated; STO for 24/7 planned |
The Siebert route is notable because it would embed Korean equities inside a familiar U.S. broker interface — potentially lowering the friction that has historically kept U.S. retail investors away from KOSPI and KOSDAQ names.
Policy Tailwind: Korea's Financial Liberalization
The announcement lands as Korea's 24-hour won trading window went live in July 2026. The government's road map — announced July 19 — allows foreign investors to open won-denominated accounts at overseas banks from 2027 and invest in Korean equities directly. This creates the regulatory scaffolding for exactly the cross-border access that Kakao Pay Securities is building on the private-sector side.
Tokenized Korean Stocks: The Long Game
Korean equities trade during KRX hours (09:00-15:30 KST, equivalent to 00:00-06:30 New York time), making real-time trading impractical for U.S.-based investors. A tokenized version of Korean stocks on a compliant blockchain layer could bypass that time-zone barrier.
The FSC's July 2026 tokenized securities guidelines signal regulatory openness on the Korean side. The U.S. SEC approval is the harder constraint. Siebert CLO Ralph Daiuto is leading the regulatory workstream. A realistic timeline for live 24/7 tokenized Korean trading is no earlier than 2027-2028, in LineVest's assessment.
Kakao Pay (377300.KQ): Key Metrics
Kakao Pay Corp. (KOSDAQ: 377300.KQ) owns Kakao Pay Securities. Q1 2026 was the company's best quarter on record:
| Metric | Q1 2026 | YoY Change |
|---|---|---|
| Total Payment Volume | ₩47T | +12% |
| Daily Active Users | 6.56M | +6% |
| Transactions per User | — | +43% |
| Financial Services Share of Revenue | ~50% | Up significantly |
Kakao Pay shares traded at ₩49,100 on July 23 (-1.7%), with the consensus 12-month analyst target at ₩57,110 — implying approximately 39% upside from current levels.
Parent Kakao Corp. (035720.KS, KOSPI) benefits indirectly: a growing Kakao Pay Securities strengthens the group's fintech flywheel.
Key Risks
- Regulatory lag: SEC and FSC approvals for Korean-stock STOs — both pending, no committed timeline
- Siebert's scale: SIEB is a micro-cap broker; capital constraints could slow infrastructure build
- User-growth ambition: Korea had approximately 14 million investment account holders nationwide as of 2025; a 20M Kakao Pay target implies capturing most first-time investors
- AI advisory regulation: FSC scrutiny of AI-driven investment recommendations is intensifying globally
All figures in KRW unless otherwise stated. This article is for informational purposes only and does not constitute investment advice.
Sources: Siebert Financial/Nasdaq (Aug 2025) · GlobeNewswire · StockTitan · Seoul Economic Daily (Jul 13, 2026) · Newspim (Jul 23, 2026) · Kakao Corp official (ENG) · Yahoo Finance
