Kakao Pay Securities has rekindled discussions with U.S. brokerage Siebert Financial Corp. for overseas expansion, more than a year after regulatory troubles forced the Korean fintech firm to abandon its American ambitions.
Executives from both companies met for two days last week at Kakao Pay’s offices in Pangyo and Seoul, with Siebert Financial Principal David Gebbia joining Kakao Pay Securities CEO Shin Ho-chul and parent company CEO Shin Won-keun to explore strategic partnerships.
The renewed courtship represents a significant shift from November 2023, when Siebert filed with the Securities and Exchange Commission to terminate an agreement that would have given Kakao Pay a 51% controlling stake in the NASDAQ-listed firm. The breakdown came amid heightened regulatory scrutiny of Kakao Corp., which included the arrest of founder Kim Beom-su over alleged stock manipulation.
Kakao Pay continues to hold about 20% of Siebert, and Shin has maintained his board seat at the New York-based brokerage since June 2023. However, questions remain about whether this renewed partnership can overcome the regulatory headwinds that derailed previous expansion efforts.
Siebert, founded in 1967, reported revenue of $83.9 million in 2024 but has struggled recently, with shares down 27% in the past month. The discussions focus on combining digital finance platforms, overseas stock brokerage services, and artificial intelligence-based trading solutions.
