Siebert Financial Corp. (NASDAQ:SIEB) today announced that it has entered into an agreement to issue shares in Siebert to Kakao Pay Corp, a fintech subsidiary of Korean-based conglomerate Kakao Corp.

Kakao Pay announced an agreement to purchase a 19.9% stake of Siebert of newly issued shares for approximately $17 million on April 27, 2023, and subject to shareholder and regulatory approval, Kakao Pay will acquire an additional 31.1% of Siebert of newly issued shares.

After the close of the second transaction, Kakao Pay will become the largest shareholder of Siebert with a total of 51% ownership of Siebert. The Gebbia family will continue to hold significant ownership, and Siebert’s current management team, led by the Gebbia family, will continue to manage the company’s operations and branch locations.

Since 2014, Kakao Pay has served the Korean market including online/offline payment, money transfer, investing, membership, bill payment, and authentication services. Kakao Pay’s subsidiary, Kakao Pay Securities, enables users to easily invest in a diverse offering of financial products and is currently offering the lowest transaction fee for U.S. stock online trading in Korea.

“We are excited to announce this transaction with Kakao Pay which will enhance our capabilities and accelerate our growth plans,” said Gloria E. Gebbia, controlling shareholder and Board Member of Siebert. “The partnership with Kakao Pay will provide us with significant financial resources to opportunistically invest in our key business lines while leveraging the expertise and technological capabilities of one of the leading financial services innovators in the Korean market to expand our reach and enhance our technology offerings. We look forward to working with Kakao Pay as we chart the next phase of our evolution to empower our clients’ success.”

“Kakao Pay has attained a great opportunity to expand its financial business abroad by making a strategic investment in Siebert, a company with over 55 years of tradition and experience,” said Won-Keun Shin, the CEO of Kakao Pay. “We will continue to enhance our user experience and benefits as a financial platform and seek new chances for innovation in the global market.”