Approval comes about 2 months after August application; Korea Investment Securities to lead listing

Operating profit reached 23.7 billion won last year; 5 consecutive years in the black

Company expanding into payments and lifestyle finance on back of two-way remittance model

E9pay corporate identity logo. [E9pay]
E9pay corporate identity logo. [E9pay]

Cross-border digital finance platform E9pay said Monday it received preliminary listing approval from the Korea Exchange's Kosdaq Market Division.

The approval came about two months after the company filed its preliminary review application in August. Korea Investment Securities will serve as the lead manager for the listing. E9pay plans to submit a securities registration statement and proceed with the public offering process, including a book-building exercise targeting institutional investors and a general subscription.

E9pay is a fintech company that became the first in South Korea to obtain a small-sum overseas remittance license in 2017. Starting with overseas remittance services for foreign residents in Korea, the company has since expanded into payments, authentication and lifestyle finance.

Its earnings have continued to grow. Last year, the company posted sales of 64.7 billion won ($48.2 million), operating profit of 23.7 billion won and net profit for the period of 19.6 billion won. Its operating profit margin stood at 36.7 percent and net profit margin at 30.3 percent, marking five consecutive years in the black. In the first half of this year, sales reached 38.25 billion won and operating profit came to 11.78 billion won, with an operating profit margin of 30.8 percent.

The key to its profitability is a two-way remittance structure that handles both outbound transfers — money sent abroad — and inbound transfers from overseas. The company offsets foreign currency flows between the two directions to reduce upfront deposit requirements and currency conversion costs. It also cuts intermediary fees through direct settlement networks built with financial institutions including JPMorgan, Shinhan Bank, Indonesia's BRI and Vietnam's VCB.

Further profitability gains are expected as inbound remittances grow. According to an unlisted and venture company analysis report published last month by Shinhan Securities, E9pay's inbound remittance volume more than doubled, rising from 242.7 billion won in 2023 to 518.4 billion won last year. Shinhan Securities projected that the cost-saving effect of netting outbound and inbound flows will begin to materialize in full from 2027.

E9pay's annual remittance volume has surpassed 3.7 trillion won, with transaction count exceeding 4.4 million. The company currently provides remittance services to more than 126 countries and offers customer support in 20 languages. Its cumulative membership has exceeded 600,000.

Beyond overseas remittance, the company is broadening its scope into a lifestyle finance platform for foreign residents. ToKpay, a mobile wallet and prepaid card launched in November last year, allows users to load foreign currency sent from overseas bank accounts as Korean won and use it for payments at domestic merchants and on public transportation. The company is also expanding its services to include E9sign, a simplified authentication service for foreigners; ToKmarket, a cross-border commerce platform; and non-face-to-face account opening, credit cards and tax refunds.

E9pay plans to invest the proceeds from the listing in expanding its corporate remittance business, upgrading its payments and settlement infrastructure, and developing new growth businesses such as commerce. Its strategy is to connect existing remittance customers to payment and lifestyle finance services to diversify its revenue streams.

"This preliminary listing approval is recognition of the growth and profitability we have built over nine years of developing financial infrastructure for foreign residents," said Jeon Hyeok-gu, chief executive of E9pay. "We will use the Kosdaq listing as a springboard to become a cross-border digital finance platform that connects every aspect of foreigners' financial lives, from their arrival in Korea to after they return home."


hajun825@heraldcorp.com