Why did KakaoBank acquire stakes in music streaming startup?

KakaoBank logo / Courtesy of KakaoBank

KakaoBank, the country’s largest internet-only bank, has made an equity investment in the fintech startup Naivy specializing in musician and music marketing services.

The bank said it recently acquired a 14.99 percent stake, or 25,809 shares, in Naivy for 908 million won ($680,000).

“We decided to invest in Naivy to support fintech startups with outstanding technology,” a KakaoBank spokesperson said.

Established in 2017, Naivy operates the PLAM app, which provides modest cash incentives to customers who listen to music in order to promote artists and their songs.

Alongside its equity investment, the digital banking unit of the country’s tech giant Kakao integrated Naivy’s service into its banking app, enabling users to access the music service directly through a tab within the app.

After listening to songs and leaving short reviews, users receive 10 won or 20 won per song directly into their KakaoBank account. No additional app installation is required.

The bank has consistently invested in fintech startups and integrated their services into its banking app, aiming not only to support these startups but also to enhance its own app through service diversification.

In January 2023, KakaoBank acquired a 14.99 percent stake in Nulleesoft, which operates SSEM, an algorithmic tax reporting service, and integrated the startup’s tax inquiry and reporting service into its banking app.

“We will continue working to create a convenient and secure financial service environment based on mutual growth,” the official said.