KakaoPay Securities has obtained a proprietary trading licence, allowing it to pursue initial public offering underwriting and supplying products using its own capital.

KakaoPay Securities said on Sunday it obtained a proprietary trading (securities) licence from financial authorities.

Financial authorities on July 1 approved KakaoPay Securities' application to register an additional business unit for its financial investment services. With the licence, KakaoPay Securities secured the authority to directly underwrite, trade and sell securities beyond its existing securities brokerage business.

The company is most hopeful about its IPO underwriting business. It can now underwrite public offerings, laying the groundwork to expand its subscription service and attract new customers.

KakaoPay Securities plans to link its large retail customer base with its investment banking business to expand IPO subscriptions and the supply of corporate finance products.

Its product lineup for individual investors will also broaden, including retail bond trading and domestic and overseas fractional-share trading.

It can also expand revenue sources using its own capital, including a sales and trading business, participation as a liquidity provider for exchange-traded funds, and diversification of bond management.

KakaoPay Securities Chief Executive Ho-cheol Shin (신호철) said, "This proprietary trading licence has laid the groundwork for us to leap into a full-service securities firm." He added, "We will create differentiated synergies by combining a large retail user base with investment banking capabilities."