Kakao Piccoma Buys 50% Controlling Share in Sakura Exchange

A Japanese digital comics’ subscription service and a subsidiary of the Korean internet company Kakao, Kakao Piccoma, has purchased a 50% controlling stake in Sakura Exchange Bitcoin (SEBC) – a Japanese cryptocurrency exchange. The amount that Kakao paid for its stake in the exchange has yet to be disclosed.

The purchase makes Kakao the largest shareholder. According to local media reports, the deal will enable Kakao to offer cryptocurrency services on its Piccoma webtoon platform, as well as expand into Web3 aggressively.

Kakao’s founder, Kim Beom-soo, stepped down in mid-March from the board of directors. His reason for doing so was to focus on the company’s affiliate brands, with one of them being the Kakao Piccoma brand in Japan. The acquisition of SEBC is the first merger acquisition move from Kakao since the founder resigned.

Kakao has shown interest in the cryptocurrency space prior to this purchase, as it launched two blockchain companies in Singapore in August last year. The companies that Kakao launched are the Klaytn Foundation, a non-profit organization, and Krust, which is a global accelerator for blockchain technology adoption.

As part of Kakao’s blockchain interest, the company runs a blockchain subsidiary called Ground X, which won a tender from the Bank of Korea in July last year, relating to the development of a central bank digital currency (CBDC). This made Ground X the chief technology supplier for blockchain-based digital won simulations.

Kakao was also an early investor in the Upbit exchange platform, which was the first cryptocurrency exchange to file with South Korea’s financial regulators.