South Korea’s Kakao Starts New Blockchain Subsidiary In Singapore to Entice More Crypto Investors
One of the largest Internet conglomerates in South Korea, Kakao Corp, has decided to establish a subsidiary of its main company in the country of Singapore. This is part of move from the messaging giant to attract foreign investments with cryptocurrencies. The story was originally reported today, November 21, by the Seoul-based media outlet News1.
The News1 article states that Kakao Corp has decided to establish a subsidiary of its other subsidiary Ground X in Singapore. The company is even considering to establish a special corporation in Singapore to manage these investments that it is making there. Their plan is very straightford, to establish their presence in this new market in a meaningful way.
The company will be using the Klaytn technology in Singapore. The testnet of this blockchain will be released in the first quarter of 2019 and, last week, Kakao Corp has decided to announce an important new partnership with Terra, a stablecoin project that will use Klaytn as a basis for blockchain-based payments.
According to the information we got, Kakao Corp expects to attract at least $88 million USD worth of investments from venture capital and other instittutional investors via Klaytn and all this in December. The plans of the company are very ambitious as they want to gather the capital and use the most of their platform do it.
It was also reported by the South Korean media outlet that this investment contract made by Kakao Corp seems to include not only the sales of simple tokens like many Initial Coin Offerings (ICOs) but also the cooperation of Kakao in their blockchain business.
Why Singapore? Because the small country is seen as a good marketplace and also a great place for the establishment of an investment corporation. It is, according to the company, very easy to raise funds in the country and there is a large tax benefit provided by the local government.