Home   >   Business   >   Koreans may begin using Kakaotalk for financial transactions next year

Koreans may begin using Kakaotalk for financial transactions next year

December 11, 2015
kakao

(Korea Times file)

Starting next year, popular messaging app Kakaotalk, which enjoys near-omnipresent use in South Korea, may be used to send money to family and friends overseas from Korea.

South Korea’s Ministry of Strategy and Finance announced a legislation Thursday in an effort to expand foreign exchanges within non-bank finance companies by introducing small-sum transactions to businesses like Kakaotalk and Naver.

If implemented, the legislation would allow mobile apps like Kakaotalk to let each user exchange up to $3,000 in one transaction, and up to $20,000 a year, with overseas recipients.

The function would mean parents of students studying abroad could send their children funds with one easy click, for now through a bank.

The Korean government is planning to introduce a funds transfer system in which banks will not be needed in making foreign exchanges, with the hopes that rising competition will eventually lower transfer fees.