Empowering Corporate Growth Through Government
Initiatives
SEOUL,
South Korea, May 20, 2024
/PRNewswire/ -- The South Korean government is spearheading the
"Value-Up Program," a strategic initiative aimed at elevating the
worth of Korean enterprises and fostering a culture of shareholder
appreciation. This long-term policy aims to empower companies
listed on the KOSPI and KOSDAQ stock exchanges to enhance their
corporate value autonomously. Under this program, companies are
incentivized to develop and execute plans to improve their value,
while the government identifies and rewards those contributing to
this objective with tax incentives, commendations, and other
perks.
Hecto Financial: A Standout Beneficiary of the Value-Up
Program
One notable beneficiary of this initiative is Hecto Financial, a
TechFin (Technology Financial) firm specializing in electronic
payments and payment gateways, listed on the KOSDAQ. Alongside its
parent company, Hecto Innovation, a mobile authentication and
electronic payment company, Hecto Financial has unveiled a
comprehensive shareholder return plan, including share buybacks and
a cash dividend representing 25% of net profits.
Hecto Financial's Remarkable Growth and Market
Dominance
With an annual payment volume exceeding KRW 200 trillion (approximately USD 168 billion), Hecto Financial has
emerged as a leading player in the South Korean market for
electronic payments and payment gateways. Demonstrating significant
growth, the company's first-quarter results for 2024 showcased a
41.3% increase in operating profit compared to the same period last
year, maintaining a consistent growth rate of over 10%
annually.
A2A Dominance: Strengthening Hecto Financial's Financial
Ecosystem Position
Hecto Financial's dominance in Account-to-Account (A2A)
transactions further solidifies its position in South Korea's financial ecosystem. A2A
transactions enable seamless fund transfers between different
financial institution accounts, a vital service in a market where
98.7% of individuals aged 15 and above hold financial accounts.
Pioneering Innovation: Hecto Financial's Stronghold in
Payment Solutions
Established in October 2000 as
SettleBank, Hecto Financial pioneered the creation of virtual
accounts and online banking systems. With a strong network of
collaborations with banks across South
Korea, Hecto Financial has maintained its stronghold,
commanding approximately 90% market share in e-commerce and over
60% across all sectors domestically.
Unrivaled Origin Rights: Hecto Financial's Leading Position
in Payment Realm
Beyond A2A transactions, Hecto Financial distinguishes itself
through its synergy with other payment methods and its ability to
provide tailored services. It holds the origin rights for top
payment methods in South Korea,
including card payments and direct carrier billing (DCB), a
testament to its unrivaled status in the payment realm. Origin rights refer to the rights to directly
provide payment services for customers through the means of cards,
accounts, carrier billing, and the origin rights are only granted
to companies recognized as trusted partners. Hecto Financial is the
only company that has earned the trust of all banks, card issuers,
and telecommunications companies to possess such comprehensive
origin rights.
Anticipating Continued Growth: Hecto Financial's Prospects
Amid Government Initiatives
As the South Korean government's "Value-Up Program" gains
momentum, companies like Hecto Financial are poised for further
growth and value appreciation. With the convergence of government
initiatives and industry strengths, investors can anticipate
enhanced value maximization in Hecto Financial and similar
enterprises operating in South
Korea's vibrant financial technology sector. Hecto
Financial's fundamental strength, coupled with the convergence of
South Korea's government value-up
policies, is expected to further maximize investor value this
year.
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SOURCE Hecto Financial