Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
KT considers acquiring Banksalad
Banksalad office in Seoul / Courtesy of Banksalad
By Park Jae-hyuk
By Park Jae-hyuk
KT's next acquisition target could be a popular asset-management app called “Banksalad.” The telecom firm is in the process of revamping its financial businesses to attain a leading position in Korea's burgeoning data-driven financial industry.
According to industry sources and media reports, Friday, KT is in talks with the asset management app operator to acquire a controlling stake, hoping to create synergy with its existing financial services affiliates ― K bank and BC Card.
KT already decided to invest 25 billion won ($22 million) in Banksalad earlier this week. The two companies have maintained a cooperative relationship since 2015, when the telecom giant developed a mobile wallet called CLiP in collaboration with the fintech startup.
KT CEO Ku Hyeon-mo has emphasized that his company will cut its reliance on the saturated telecommunications business, saying acquisition deals in various sectors will be seen throughout this year.
By acquiring Banksalad, KT will be able to secure a MyData license as well as around a hundred additional fintech experts. In addition, KT can consider various new services utilizing data possessed by Banksalad. As of January, the collective amount of assets managed by Banksalad surpassed 405 trillion won.
A KT spokeswoman declined to comment on the company's acquisition of additional shares in Banksalad. A Banksalad spokeswoman also mentioned merely that KT made an investment in its 100 billion won Series D funding, which is generally for financial mergers or acquisitions.