South Korean Kakao Corp Intends To Raise $90 Million During Second ICO
The crypto division of the largest South Korean conglomerate of Internet companies Kakao Corp intends to repeat the initial coin offering and attract another $90 million, Bloomberg reports.
In December 2018, Kakao Corp announced its plans to raise investments through its subsidiary Ground X in the amount of $300 million, which will be used to issue its own token. In the first session of the initial coin offering, the firm managed to receive $90 million for blockchain-based platform Klatyn.
Jason Han, Ground X head, said that such companies as Translink Capital, Crescendo Equity Partners, and IDG Capital took part in the investment. He noted that a game development company WeMade Entertainment Co. and travel company from China Zanadu intend to build their own apps on Klatyn.
According to some preliminary information, Kakao Corp also plans to launch its own service on the platform. Han said that negotiations on this issue are still ongoing.
Currently, Ground X has 65 employees, but it is planned to expand the staff on the eve of the Klatyn launch. The beginning of its work was scheduled for 2018, but, according to Han, the company had to postpone it due to the need for the platform improvements.
The Kakao Corp's financial report, published in February 2019, shows that in the fourth quarter of the last year, the conglomerate's spending on innovative technologies, including blockchain, exceeded $57 million.
At the same time, the expenses of the company on blockchain technology and other innovative developments brought only $3.8 million in profits during the last quarter of 2018.