Koreans may begin using Kakaotalk for financial transactions next year

December 11, 2015

(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.