South Korean Government’s “Value-Up Program” Fuels Growth for Hecto Financial in Evolving Payment Landscape

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