[비즈한국] KakaoBank has set out to acquire a capital firm through a merger and acquisition (M&A). The move is aimed at diversifying its portfolio beyond a business structure centered on household loans to include auto finance, corporate finance, and investment finance. With household debt regulations increasing constraints and growth in platform revenue reaching a plateau, the market is watching closely to see if the capital business will become a new breakthrough.
Entering the Capital Business via 100% Stake Acquisition of Mastern Capital
On June 24, the KakaoBank board of directors resolved to acquire a 100% stake in Mastern Capital for 24.1 billion won. The purpose of the acquisition was stated as "part of a new business investment plan to enhance corporate value, and to pursue financial innovation and growth by entering the capital business." The date of the share acquisition has not been finalized, as it must account for regulatory approval processes, including those from financial authorities, as well as reviews for a change in major shareholder and subsidiary status.
Mastern Capital is a small capital firm established in 2022 by Mastern Investment Management and NH Investment & Securities. KakaoBank stated, "We are preparing with the goal of completing the acquisition within the year," adding, "After receiving final approval from financial authorities and acquiring management rights, we will launch it as an official KakaoBank subsidiary following the post-merger integration (PMI) process." Considering the time required for regulatory approval, a launch appears possible next year.
Prior to the board resolution, KakaoBank had also signaled the launch of a capital firm by filing a trademark for "KakaoBank Capital" with the Korean Intellectual Property Office on June 22. The designated goods included collateral loans, loan finance, revolving loans, credit installment finance, auto loan brokerage, and auto installment sales finance.
KakaoBank has consistently signaled its plan to enter the capital business through M&A. During the 2025 annual earnings conference call, the company explained that it was prioritizing M&A of a capital firm, noting that no other internet bank had entered the sector yet and that it would have high future financial contribution. In the first-quarter conference call held this past May, KakaoBank CFO Kwon Tae-hoon also stated, "We are considering the acquisition of a capital firm to strengthen corporate finance and enter the non-bank credit market, including leases and installments."
Once the acquisition of Mastern Capital is completed, KakaoBank will secure a specialized credit finance business license. Regarding the purpose of securing a capital firm, KakaoBank explained, "We can diversify KakaoBank’s credit portfolio, which has been centered on personal retail finance, into asset-backed finance and corporate finance."
Following the acquisition, the company unveiled business plans to enter the fields of auto finance, corporate/personal user finance, and investment finance. For auto finance, it will provide non-face-to-face auto financial services centered on installment finance, leasing, and rental services. For corporate/personal user finance, it will provide funds to sole proprietors and small and medium-sized corporations that cannot utilize tier-one financial institutions. Investment finance is intended to diversify non-interest income and expand corporate finance operations.
Moving Beyond Household Loan Limits to Expand Corporate Finance
As KakaoBank begins its full-scale entry into the capital business as promised, the market is paying close attention. Because regulations on household debt continue to limit loan expansion, and growth in commission and platform revenue is stagnating, a capital firm could serve as a new growth engine. Jung Joon-seop, an analyst at NH Investment & Securities, analyzed, "Acquiring a capital firm provides a synergy effect by capturing the benefit of a high Return on Equity (ROE) while offsetting the drawbacks of high funding costs and weak credit assessment capabilities."
The capital business is also attracting attention as a breakthrough for overcoming the limitations of entering corporate finance. KakaoBank is the first in the industry to jump into the capital business while internet banks—which are principally required to operate non-face-to-face—are each preparing growth measures within their constraints. Productive finance, which provides funds to companies, is also expected to expand through the capital firm. On July 1, financial authorities decided at their 12th regular meeting to partially ease the scope of face-to-face duties for internet-only banks, which are generally restricted to non-face-to-face operations.
It appears it will take some time for the firm to stand out in the market after its capital launch. Mastern Capital is a small firm with only 52.4 billion won in equity capital, and its recent performance has declined significantly. Mastern Capital's operating revenue in 2024 was 8.6 billion won with a net profit of 400 million won, but in 2025, it recorded an operating revenue of 6.5 billion won and a net profit of 2.3 billion won. Compared to major capital firms affiliated with financial holding groups—which have annual net profits exceeding 200 billion won—it is far behind in terms of scale, even compared to smaller peers in the 50 billion won range.
Because it is a small firm, its portfolio is also limited. Mastern Capital's business areas consist of financial leases where the lessor purchases and rents out machinery, corporate loans, project financing (PF) loans, and real estate loans. Although auto finance is critical, with capital firms holding over 90% of the domestic auto installment finance market, Mastern Capital currently lacks the operational base to leverage this.
Regarding its plans after acquiring Mastern Capital, KakaoBank explained, "In the short term, we will launch auto installment financial services as soon as possible," adding, "In the mid-to-long term, we will expand our business into auto leasing and rentals and target the non-face-to-face market by collaborating with auto distribution platforms. For corporate and investment finance, we will expand our business areas in stages to diversify our credit portfolio and increase productive finance."