Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
Naver, Mirae Asset Daewoo form partnership in fintech
The Naver headquarters in Seongnam, Gyeonggi Province / Yonhap
By Jhoo Dong-chan
By Jhoo Dong-chan
Naver and Mirae Asset Daewoo are set to form a partnership to expand their presence in the nation's fintech business, the firms said.
Mirae Asset also promised to invest in the nation's largest online portal under the partnership. Kakao, operator of Korea's most widely used messenger app KakaoTalk, has dominated the nation's fintech businesses, but the synergy between the two firms is expected to emerge as a viable contender.
Naver said it will carve its Naver Pay division up to establish a financial subsidiary by Nov. 1. Mirae Asset Daewoo also promised to invest 500 billion won ($423.3 million) to help Naver set up a comprehensive financial platform.
“The firms are expected to create a great deal of synergy under the partnership,” said IBK Securities researcher Lee Seung-hoon.
“They aren't likely to launch a banking business in the near future, but the partnership will create various opportunities in payment, insurance and loans. Online-based Naver Pay is expected to stretch its presence into our everyday lives via affiliate Naver Place's online-to-offline service. Naver Place has secured a total of 2.6 million affiliate stores across the country.”
The two firms have maintained ties with each other since December 2016 when they jointly established a future growth engine equity fund worth 100 billion won.
In June 2017, Mirae Asset Daewoo invested 500 billion won to own a 1.71 percent stake in Naver. Naver also bought Mirae Asset Daewoo shares to secure a 7.1 percent stake in the brokerage.
Mirae Asset Daewoo now aims at strengthening its presence in fintech under the partnership with Naver.
“Mirae Asset is now seeking opportunities to strengthen its electronic payment settlement agency services,” said an industry insider who asked not to be named.
“The partnership with Naver will be a great boost for Mirae Asset's plan. Naver's platform will provide various fintech opportunities.”