A leading internet bank in South Korea, KakaoBank, has recently acquired a strategic stake in a rising fintech called Naivy, which provides digital music marketing services and respective platforms.
KakaoBank purchased around 15% of Naivy’s shares for around $680,000 USD at the current exchange rate. Some local news reports cited this on August 15, directly quoting a KakaoBank spokesperson.
KakaoBank itself is majority-owned by tech giant Kakao Corporation. It also has interests in major entertainment firms such as SM Entertainment—one of the big three talent agencies in South Korea—and owns Melon, which is the largest music streaming app in the country.
When asked to comment on the investment made in Naivy, the bank spokesperson focused on their goal: to support innovative and promising technology fintech startups. Naivy runs an app called PLAM that pays users financially for simply listening to songs. This is a very radical new model that will allow artists to become better known, their music more widespread, and listeners to have a more enjoyable experience.
Interestingly, just last week, KakaoBank itself launched a similar service within its mobile banking platform. Now, at the KakaoBank app, customers can directly go into Naivy’s PLAM app. For every song they review, small cash rewards are earned and go straight into their account. No need to download separate apps.
Other than KakaoBank, Naivy also drew interest from RBW Entertainment, a multi-faceted music firm representing some of the most popular Korean artists. For its part, KakaoBank has a history of investing in, then integrating, fintech startups to provide easier and more convenient banking. Another recent example is Nulleesoft’s tax software service.
An executive from KakaoBank said the bank would never stop innovating in the sphere of financial technology to establish shared growth. However, the looming legal battle over the controversial purchase of stakes by Kakao Corp could risk the majority ownership of the company in KakaoBank.
