Hello, I'm Won-keun Shin, CEO of KakaoPay. I would like to first extend my gratitude to fund managers and analysts for joining KakaoPay's Q3 2023 Earnings Call. I will begin with key business metrics, followed by TPV, consolidated operating revenue and expense, P&L, and then key performance highlights. Let's begin with the key metrics for Q3 2023. Q3 2023 TPV was KRW 36.2 trillion, up 18% year-over-year. Revenue TPV was up 15% year-on-year, reporting KRW 10.5 trillion, surpassing the 10 trillion mark for the first time. Q3 revenue was KRW 158.9 billion, which is an increase of 12% year-over-year. Net loss for Q3 2023 was KRW 8.2 billion, with EBITDA at -KRW 1.4 billion. If we take a look at the business metrics, as of Q3 end 2023, MAU count for KakaoPay was 22,920,000. This is marginally lower than 24 million that we saw in the second quarter, which is due to a temporary impact from a decline in users of e-document services, following the increase we saw in June from payment of property taxes. But during the same period, main services of payment, money transfer, asset management, as well as KakaoPay apps MAU, were up versus last quarter. And transaction count per user was up 4% year-over-year, recording 105 transactions. From this quarter onwards, we will disclose number of domestic merchants and share with you the uptrend. On the back of sharp rise in overseas merchants, including from China, we onboarded tens of millions of overseas merchants by the end of the third quarter. But this figure may cause some confusion in terms of the growth trajectory of KakaoPay's merchant base, so we will share with you a more meaningful figure from investors' perspective, which is the number of domestic merchants. As of now, we have cumulative 96,000 domestic merchants, coming close to 1 million. This is a 20% rise year-over-year, with a clear uptrend seen in offline merchants. Through partnerships with major businesses from each consumer category, KakaoPay will continue to broaden its on and offline merchant base to be a step closer to the everyday lives of our users. Next, I will invite Aiden, who is the CFO, and he will walk you through Q3 TPV. Hello, I'm Aiden, the CFO. Q3 TPV was KRW 36.2 trillion, which is up 18% year-over-year. Revenue TPV was KRW 10.5 trillion, accounting for 29% of the total TPV. Q3 TPV reported a double-digit growth year-over-year across all of the services, including payment, financial, and other services as well. Payment service TPV was up 16% year-over-year. Underpinned by solid online payment growth, both rise in offline cross-border payment by inbound foreign travelers and offline payment of domestic users drove this quarter's TPV growth. 금융서비스 TPV에서는 포함하고 있지 않지만, 증권 서비스의 거래액도 증가하고 있습니다. 카카오페이 증권의 국내 주식 거래액은 전년 동기 대비 274% 증가했습니다. 작년 12월부터 시작된 내 계좌 송금 무료 정책으로 송금 등 기타 서비스 거래액 또한 전년 동기 대비 20% 증가했습니다. 카카오페이 증권은 종합계좌 예탁금 300,000원에 대해 연 5%, 초과 금액은 1,000,000원까지 연 2.5%로 제공하던 이벤트성 혜택에 대해 유저들이 호응에 힘입어 10월 16일부터 카카오페이 증권의 기본 예탁금 이용료 정책으로 변경하였습니다. 예탁금에 대한 이자 혜택 강화와 카카오페이 증권의 주식 거래량 증가 등으로 이번 분기에도 카카오페이 머니 충전 잔고는 지난 분기보다 증가한 KRW 1조 1,867억원이며, 이 분기 말보다 1,193억 증가한 수준입니다. 전체 서비스의 거래액 증가세는 4분기에도 이어질 것으로 전망되며, 이에 따라 2023년 전체 TPV는 전년 대비 15% 이상의 성장을 무난히 달성할 것으로 예상합니다. Digital finance saw 13% TPV growth versus last year on diversified offering of loan products, despite decline in volume of credit loans. We are also seeing growth in securities services, although the figure does not form part of our digital finance TPV. The company's domestic and overseas stock trading volume also reported a year-over-year growth at 274%. On the back of free service on money transfer to one's own account, which we introduced in December, TPV for money transfer and other services recorded a 20% year-over-year growth. We also ran a promo event where for the deposits in the accounts of KakaoPay Securities, we gave 5% per annum interest up to KRW 300,000 and 2.5% to above that threshold, up to KRW 1,000,000. This was well received among KakaoPay users, so we decided to adopt this as the standard interest rate policy for KakaoPay Securities starting October 16th. With higher interest rate benefits given on the deposit and on growing stock trade volume of KakaoPay Securities, KakaoPay money balance this quarter also increased QoQ, reporting KRW 1,186.7 billion, which is higher by KRW 119.3 billion versus the end of the second quarter. We expect TPV growth to continue across all of the services in the fourth quarter, easily bringing our total TPV for 2023 up 15% year-over-year. 3분기 매출은 전년 동기 대비 12.4%, 직전 분기 대비 6.7% 증가한 1,589억원을 기록했습니다. 결제 서비스 매출은 전년 동기 대비 17.2%, 직전 분기 대비 5% 증가한 1,130억원을 기록했으며, 결제의 전 영역은 YOY 두 자릿수 성장률을 기록했습니다. 전년 동기 대비로는 온라인 논캡티브와 해외 결제가, 전분기 대비로는 온라인 캡티브와 해외 결제 매출 증가가 이번 분기 결제 서비스의 매출 성장을 이끌었습니다. 금융 서비스 매출은 전년 동기 대비 0.7%, 직전 분기 대비 9% 성장한 377억원을 기록했습니다. 카카오페이 증권의 매출 확대와 카카오페이 손해보험, 해외여행자 보험 상품의 긍정적 반응으로 매출이 개선되고 있습니다. 기타 서비스 매출은 전년 동기 대비 9.3%, 직전 분기 대비 20.3% 상승했습니다. 송금 서비스 무료 정책과 관련한 매출 감소분을 상쇄하는 수준의 중개, 광고 매출이 인식되며, 의미 있는 증가세를 보이고 있습니다. Q3 revenue was up 12.4% year-over-year, and 6.7% QoQ, reporting KRW 158.9 billion. Digital payment revenue was up 17.2% year-over-year, and 5% QoQ to KRW 113.5 billion, reporting a double-digit growth year-over-year across all of the payment services. On a YoY basis, growth was driven by online, non-captive, and cross-border payments, while on QoQ basis, higher online captive and cross-border payment revenue were the main drivers. Digital finance revenue was up 0.7% on year and 9% on quarter, reporting KRW 37.7 billion. On the back of revenue expansion from KakaoPay Securities and positive market response for the travelers insurance product from KakaoPay Insurance, we have seen revenue and top-line improvement. Other service revenue was up 9.3% year-over-year and 25.3% QoQ. We booked card brokerage and advertisement revenue at levels that can offset revenue decline from making money transfer service free of charge, and as such, we are seeing a meaningful uptrend. 3분기 영업비용은 전년 동기 대비 11.5%, 직전 분기 대비 4.3% 증가한 1,684억원입니다. 결제 서비스의 매출 증가와 중개 금융 서비스가 다양화되며, 지급 수수료는 전년 동기 대비 18.2% 증가했습니다. 자회사를 통한 신규 사업 확장이 이어지며 상각비도 전년 동기 대비 23.7% 늘었지만, 연간 계획된 수준에서 관리하고 있습니다. 직전 분기 대비로는 광고 선전비는 전략적 비용 집행 노력이 이어지며 0.2% 감소했습니다. 기타 비용은 여행자보험 판매 호조에 따른 보험 서비스 비용의 발생이 주요 요인으로 24.2% 증가하였습니다. 또한 페이 증권이 예수금 증가와 5% 예탁금 이자 정책 영향이 일부 반영되어 있으나, 이는 장기적 측면에서 유저의 효익 증대 장점이 더 큰 것으로 보고 있습니다. Q3 operating expense was up 11.5% year-over-year and 4.3% QoQ, reporting KRW 168.4 billion. With the digital payment revenue growing and diversified offering of brokerage and financial services, commissions paid increased 18.2% year-over-year. And on business expansion through the subsidiaries, depreciation costs went up 23.7% year-over-year, but are still managed within the scope of our annual plan. On QoQ basis, A&P expense was down 0.2%, thanks to strategic spending efforts. For the other expense, it increased 24.2% on the back of insurance service costs, following positive sales of travelers insurance. Although there was also an impact from growth in deposits held by KakaoPay Securities and the 5% interest rate impact on the deposits, we believe people will see greater user benefits in the longer run. Q3 consolidated operating loss was KRW 9.5 billion and EBITDA -KRW 1.4 billion, and net loss reported KRW 8.2 billion. Underpinned by steady profit from our core businesses and realization of earnings from subsidiary companies like KakaoPay Securities and KakaoPay Insurance, both consolidated and standalone basis operating loss rates have been on decline for three consecutive quarters. We will endeavor to downsize losses driven by top line growth in line with annual guidance and through efficient cost allocation. Third quarter separate basis revenue was KRW 142 billion, which is up 15.6% on year and 4.5% versus the previous quarter. Third quarter separate basis operating profit was KRW 12 billion, and OP margin was 8.5%. Standalone operating profit also was on an uptrend for three consecutive months, three consecutive quarters as we continue to secure earnings that is profitable. Next, I will invite Jason, who is the Head of Business, and he will present on key business highlights. Hello, I am Jason, Head of Business. Payment is KakaoPay's main service, which driving robust earnings growth every quarter. And on the back of our competitiveness in online payment, whose growth potential has been proven, both revenue and TPV of offline payment and cross-border payment continue to show a double-digit growth robust earnings growth every quarter. And on the back of our competitiveness in online payment, whose growth potential has been proven, both revenue and TPV of offline payment and cross-border payment continue to show a double-digit growth on both YoY and QoQ basis. During the fourth quarter conference call last year, we talked about the strategy of enhancing customer benefit, expanding point of usage and cross-border payment, and how these will form the main pillars of our earnings strategy going forward. 이후 카카오페이는 유저의 금전적 효익이 최대화될 수 있도록 혜택 탭을 개편하였고, 할인 쿠폰, 포인트 모으기, 주변 매장의 할인 이벤트, 카드 혜택 등의 합리적 알뜰 소비 정보를 유저가 찾아쓰기 쉽게 제공하고 있습니다. 최근에는 국내 대표 오픈마켓인 십일번가와 제휴를 맺고 카카오페이 간편 결제를 탑재했으며, 쇼핑, 여행, 업종, 식음료 등의 카테고리별 핵심 사용처를 가맹점으로 확보하기 위한 노력을 계속하고 있습니다. 대형 패스트푸드와 카페 브랜드들의 키오스크를 포함해 공유 킥보드와 자전거 등 퍼스널 모빌리티, 알뜰 모바일 교통카드까지 카카오페이 결제의 영역은 유저의 생활 주변에서 간편 결제의 편의성을 넓혀가고 있습니다. Since then, we revamped the Benefit tab to maximize monetary benefits to users, making it easier for users to find discount coupons, collect points, find discounts at nearby shops, enjoy credit card benefit features which enable rational and mindful consumption. Most recently, we partnered up with Korea's major open market, 11Street, embedding KakaoPay's Easy Pay feature as we continue to onboard major merchants per category, such as shopping and travel and F&B, from kiosks at large fast food chains and cafe brands to personal mobility, including bike and kickboard sharing, to affordable transit cards. We are broadening our payment space, spreading the convenience of easy and simple payment in the everyday lives of users. 다음은 해외 결제입니다. 현재 카카오페이는 아시아, 유럽, 미주까지 50여 개국에 육박하는 해외 국가 및 지역과 결제 서비스를 연동하고 있습니다. 카카오페이는 한국을 방문하는 연간 1,300만 관광객의 결제 활동의 60%를 커버하겠다는 목표로 아시아 9개국의 간편 결제 연동 확대를 추진하고 있습니다. 해외 결제 거래액은 2개 분기 연속으로 전년 동기 대비 1.8배씩 증가했고, 특히 지난 분기에 이어 이번 분기도 한국을 찾는 외국인 관광객이 늘면서 국내 카카오페이 가맹점에서의 결제액도 증가하고 있습니다. Next is cross-border payment. KakaoPay is connecting its payment services across 50 or so countries and regions across Asia, Europe, and the Americas. Our goal is to have 60% coverage of 13 million annual inbound tourists as it expands its efforts on linking up with 9 Asian countries' easy payment network. Cross-border payment TPV was at 1.8 times year-over-year for 2 consecutive quarters, and as inbound foreign tourists increased following the trends last quarter, we are seeing growing TPV from domestic KakaoPay merchants. 해외를 여행하는 카카오페이 유저를 위한 다양한 서비스들도 고도화되고 있습니다. 해외를 방문한 카카오페이 유저의 국가에 따라 카카오페이 화면에서 해외 결제처, 혜택 받기, 페이론 소식 등의 서비스 피드가 다르게 노출되게 설계하였습니다. 이에 따라 카카오페이 유저는 해당 국가에서 카카오페이 이용 방법을 찾아보는 수고로움 없이, 카카오페이의 해외 결제 서비스를 안내받고 이용할 수 있습니다. 카카오페이는 해외 결제가 결제 서비스의 수익 성장 기여도를 높여갈 수 있도록 인프라 고도화에 힘쓰고 있습니다. 다음으로 페이 증권과 페이 손해 보험의 3분기 주요 성과에 대해 박정호 서비스 총괄 리더가 이어서 설명해 주시겠습니다. We are also scaling up variety of services for KakaoPay users who travel overseas. Depending on the country the user is visiting, we designed the service feed to show differently on the interface, ranging from cross-border offline merchants, benefit offerings, and payment news, enabling users to get access and use KakaoPay's cross-border services without the hassle of having to figure out how to use those services in the country they're visiting. At KakaoPay, we are working hard to scale up the infrastructure so that the cross-border payment can have bigger impact on the growth of earnings from our payment services. Next, Jeff, who is the Head of Services, will walk through third quarter highlights for KakaoPay Securities and Insurance. 안녕하세요, 서비스 총괄 리더 박정호입니다. 카카오페이 증권의 주요 성과를 말씀드리겠습니다. 페이 증권의 펀드 주식 예탁금을 포함한 예탁자산은 2023년 8월 2조 원을 돌파하였습니다. 카카오페이 증권의 MTS 서비스에서 주식 정보를 확인하고, 토론방에 참여하고, 얻은 정보로 주식을 거래하는 등의 유저 활동성은 매 분기 증가하고 있는데요. 이로 인해 카카오페이 증권의 3분기 거래액은 2022년 10월 출시 이후 역대 최고치인 9.7조 원을 기록했습니다. 특히, 카카오페이 증권의 3분기 거래 대금은 직전 분기 대비 40%의 증가를 보였는데요. 같은 기간 시장의 거래 대금이 12% 증가한 것에 비해 높은 성장세를 유지했습니다. Hello, I'm Jeff, in charge of services. Next, I will talk about KakaoPay Securities. Total deposited assets under management at KakaoPay Securities, including funds, stocks, and deposits, surpassed KRW 2 trillion in August 2023. We see user activities go up every quarter as people check stock news through the MTS service, join discussion groups, and trade stocks based on what they learned. As a result, KakaoPay Securities' Q3 TPV was record high at KRW 9.7 trillion since its launch back in October 2022. Worth noting is that Q3 TPV for KakaoPay Securities increased 44% QoQ, widening the gap with the market trend of 12% growth over the same period. 또한 카카오페이 증권은 매도 담보 대출 서비스인 주식 환매금 미리 받기 서비스를 지난 8월 오픈해 제공하고 있으며, 유저의 일별, 월별 주식투자 손익을 직관적으로 확인할 수 있는 매매 일지 서비스도 지난 9월 구축했습니다. We also started with a stock-backed loan service under the brand name of Stock Selling Proceeds in Advance last August, and introduced Trading Journal in September, providing intuitive visibility into investment returns on a daily and monthly basis. 카카오페이 증권만의 Gamification이 적용된 주식 서비스도 더 다양해졌는데요. 최근 시작한 천하제일 투자왕 대회는 유저들 간의 다양한 투자 힌트와 소통으로 해외 주식 투자 경험도 넓히고, 투자 자산도 늘려가는 재미를 즐길 수 있도록 고안되었습니다. 카카오페이 증권은 소통과 교류 기반의 투자 문화를 제공하고, 유저의 수요를 면밀히 관찰하며, 필요한 서비스들을 제공하는 전략을 통해 모바일 주식 투자 시장을 공략하겠습니다. Gamification features unique to KakaoPay Securities have enriched its stock service offerings. We most recently began Greatest of All Traders Tournament, designed to help broaden investors' experience in overseas stock investment based on sharing and communicating various investment tips between the users and to make it fun while growing their investment assets.... KakaoPay Securities would create an investment culture on the basis of communication and exchange, and closely monitor user demand to offer services that investors consider to be essential. This will be the tenet of our strategy in going after the mobile-based stock trading market. [Foreign language] Next is KakaoPay Insurance. Since its release last June, overseas travelers insurance was taken out by 200,000 people on a cumulative basis. This was an innovative and user-friendly product, breaking the convention of legacy insurance products, and KakaoPay Insurance is gaining the reputation as a top-tier brand of travelers insurance. Also, KakaoPay Insurance was the first to adopt a service whereby insurance claims is paid almost immediately. By leveraging digital innovation, we developed a system enabling claims to be paid within a minute after a claim is submitted via KakaoTalk. Through the upcoming daily insurance services, KakaoPay Insurance will offer enjoyable experience from buying an insurance product to claims payment, and leverage off of such positive user experience to continue the growth in the new segments of the insurance market. Next, Allen will talk about ESG and our future plans before we end the presentation. [Foreign language] Hello, this is Allen again. According to 2023 ESG assessment published by Korea Corporate Governance Service, KakaoPay was rated A. We will take heed of what external stakeholders, including the investors, have to say, and set out a more sophisticated ESG management framework to be a company that create a beneficial financial flow. [Foreign language] So far, we've walked through business highlights for Q3 of 2023. In offline payment, we've seen significant increase in number of transactions and TPV, and with the rebound in traveling following the restrictions seen during the COVID pandemic, there is clear quarterly performance growth driven by expansion in offline cross-border payment infrastructure. KakaoPay services, including payment, finance, securities, and insurance, all started with the purpose of providing easy access to financial services and providing monetary benefits to everyone, and in so doing, drove enhancements through unique attempts to enable 40 million KakaoPay users to enjoy that benefit with ease of use. Worth noting hence is the travelers insurance, a bold and innovative approach taken on by KakaoPay Insurance, which drove tangible top-line results. We therefore expect KakaoPay Insurance's revenue contribution to continue to grow going forward. Revenue guidance, which we communicated beginning of the year, is the very target all of KakaoPay crew are working to achieve. We will endeavor to bring that effort to fruition during the upcoming fourth quarter earnings call. Thank you. [Foreign language] Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 골드만삭스 증권의 박신영님입니다. The first question will be presented by Shinyoung Park from Goldman Sachs Securities. Please go ahead with your question. 안녕하세요. 저, 골드만삭스 증권의 박신영입니다. 그 질문 두 가지 드리고 싶은데요. 우선 첫 번째는 증권 관련 질문이에요. 그 지난 분기부터 저희 그 유저 액티비티라든지 잔고 등이 좀 유의미하게 늘어나고 있는 모습으로 보여지는데요. 내년에 가장 큰 매출 성장 드라이버를 증권으로 보는 게 맞는지 궁금하고요. 또 관리하시는 KPI 지표에 대해서도 설명 부탁드려요. 뭐 고객 예탁자산이라든지, 아니면 거래 점유율, 아니면 뭐 신용잔고라든지. 그러니까 궁극적으로 저희가 매출 달에서 눈여겨봐야 할 수치가 수수료 수익보다는 이자 수익이 맞는지 해서 확인차 여쭤봅니다. 두 번째는 결제 관련 질문인데요. 앞서 그 11번가와의 그 전략적인 제휴에 대해서 언급을 해주셨는데, 좀 상세한 설명해 주실 수 있으면 좋을 것 같고요. 저희가 이걸 통해서 그 회사 측면에서 기대하는 바가 무엇인지, 또 앞으로도 이런 전략적 파트너십을 강화해 갈 계획이신지도 궁금합니다. 감사합니다. Thank you for taking my question. I am Shinyoung Park from Goldman Sachs. I would like to ask you two questions. First is on your securities business. We've seen some meaningful improvement in terms of the user activity, metrics as well as the total balance. Would like to understand, and I just want to check whether this is a correct understanding, whether come next year, your securities business is going to be one of the biggest growth drivers for you. And also, can you provide a little more color on each of the KPIs that you are monitoring in terms of the amount of, assets that have been deposited by the customers and also the market share and the outstanding balance when it comes to your credit or margin loans? And also, is it right for us to assess that at the revenue top line level, it's actually the interest income or interest revenue that's gonna play a bigger role versus your commissions and fee revenue? Second question relates to the payment business and the strategic alliance that you mentioned that you entered into with 11Street. Can you provide a little more elaboration as to what that partnership arrangement seeks? And also, what does the company expect out of such a strategic partnership? 대표이사 신원근입니다. 첫 번째 질문은 제가 답변드리겠습니다. 아직은 내년도 사업 계획을 준비 중에 있어서 2024년 매출 성장률에 대한 구체적인 가이던스는 다음 실적 발표에서 말씀드리겠지만, 말씀주신 대로 증권 사용자의 활동성 지표와 국내 해외 주식 거래, 예탁금 잔고 등 전반적인 사업 지표가 우상향하고 있어서 증권은 내년에 중요한 매출 성장 드라이버 중 하나라고 말씀드릴 수 있습니다. 지표를 몇 가지 말씀드리면, 3분기 국내 및 해외 주식은 거래액이 9.7조 원으로 YoY 279%, QoQ 44% 증가했습니다. 주식 거래 건수로 보면 2022년 12월 대비 144% 증가하였고, 이 중 해외 주식은 158%, 국내 주식은 131% 성장했습니다. 펀드와 주식, 예탁금을 포함한 예탁자산 역시 꾸준히 증가해 2조 원을 돌파했습니다. 또 지켜보고 있는 유저 활동성 지표인 페이지뷰는 연초 대비 3배를 증가한 수치를 보이고 있고요. MAU는 연초 대비 약 40% 상승, 특히 해외 주식 거래 사용자 역시 2022년 말 대비 2배 이상 증가했습니다. 신용 거래, 신용 공여 거래 금액은 현재 국내 주식 전체 거래 금액의 약 15% 수준인데요. 작년 말 대비 카카오페이 증권의 신용잔고는 208% 상승하여 좋은 성장세를 보여주었습니다. 여기에는 4번에 걸쳐 진행된 고구마 줄기 주식 다오와 같은 게임 요소를 가미한 프로그램이 많은 기여를 했습니다. 더불어 상반기에 진행된 주식 홈 개편, 애프터 마켓 거래 지원, 주문 화면 리뉴얼뿐만 아니라 3분기에도 매도 담보 대출, 매매 일지 등 MTS의 주요 서비스적 개선을 통해 이용자의 만족도가 높아지면서 리텐션 지표 역시 상승 중입니다. Hello, this is Allen. Responding to your first question. At this point in time, we are in the process of developing and devising our business plan, so I believe that we will be able to share with you a more specific guidance come next earnings conference call. As you have mentioned, if you look at some of the activity in indicators for our customers of securities services, for instance, in terms of the overseas stock trading volume and balance of deposit, all of these indicators are showing an uptrend. And so I can tell you that our securities business is going to be one of the very critical drivers for our growth in next year. Just to delve into a little more detail on each of the measures, if you look at the trading volume, both domestic and overseas stock, it amounted to KRW 9.7 trillion, which is a growth of 279% on year and 44% QoQ growth. And also, if you look at the number of transactions compared to the end of 2022, we've seen a 144% growth, out of which 158% is for overseas stock and 131% is domestic. Now, looking at the assets under management, which includes the funds, the stock, and the deposit, we've seen a continuous increase and it has now surpassed above KRW 2 trillion level. Also, looking at some of the user-related metrics, page view, for instance, have gone up on a YTD basis 3 times, and also monthly active user count at this point had also gone up by about 40% on a YTD basis. And if you look at the number of users who are making overseas stock trade compared to end of 2022, we've seen a twofold growth. And at this point, the total amount of margin or credit loans out of the entire domestic stock trading volume, it now accounts for about 15%, and the outstanding balance within KakaoPay Securities has gone up by 208%. So we're seeing a very solid growth. Also, we have implemented across 4 instances some of the gamification programs, which really helped with the overall transaction volume. Also, in the first half of the year, we also gave a new facelift to our stock home homepage and provided after market transaction support and renewed the order screen. Also, on top of that, we introduced the stock back loan as well as journal entry services, which all brought up and enhanced overall service offerings under the MTS that really improved on the user satisfaction, and hence we are seeing improvement in retention measures. Regarding the second question about the interest revenue, you are correct that from a shorter term perspective, it is more salient. The interest revenue growth is more salient compared to the commissions and fee income growth. As I've mentioned previously, the 5% interest rate we had applied to the deposited amount, which was done as part of the promotion. As of October 16, we've changed that into a standard policy, and that, after seeing how positive the user responses were when we applied this interest rate. Going forward, with the increase of the AUMs and the assets that the users deposit with us, that's going to drive up interest income, and at the same time, we will have to pay out more benefits to our customers. But however, we are seeing improvement in the overall profit as the top line growth is high enough to offset that increase in expenses. On top of the improvement in the overall size of the asset that is deposited with us, basically, we are offering real benefits to the users, which really helps us to facilitate the users to start using other KakaoPay services. And also, it's making a contribution in the sense that we are able to save on the firm banking cost and is contributing to increasing the applications MAU with the launch of, for instance, receiving interest on a daily basis type of a scheme. So aside from the interest revenue, fee income is also a very important indicator that we monitor and follow. This year, we focused on giving certain fee promotions so that people could actually try out these different types of functions and features. Going forward, as we now have all of these value-added features well in place, we will adjust our business approach so that we can appropriately book the right level of fee income. So going forward, I do look forward to seeing an uptrending fee and commission income. The second question is about the business overall, and I will answer that.... Kakao 생태계 안에서의 결제뿐만 아니라 종합 전문몰, 패션 잡화몰, 화장품 뷰티몰, 여행, 티켓, 문화몰, 디지털 콘텐츠몰과 같은 다방면의 국내 결제처에서 이용할 수 있습니다. 카카오페이는 사용자들의 결제 경험 향상을 위해 앞으로도 다양한 전략적 제휴와 파트너십을 강화해 나갈 예정입니다. So this is Jason. I will respond to your question about the strategic partnerships. As part of our focus to further strengthen the overall KakaoPay payment ecosystem, we've entered into, as of October 25, a MOU with 11Street. And so during the grand Double Eleven period, which is the biggest shopping season at the 11Street platform, KakaoPay payment service will be provided, will be enabled, and we will be doing, running various different promotions during that period of time. We will be offering a actual benefit to our user base and provide very stable and convenient shopping experience. And we will be looking forward to generating synergies based upon the collaboration between the two companies. Supported by our partnerships in this online payment service, we will expand our discussions to include other efforts, including partnering up on the insurance side, providing reward promotions, and providing promotional discounts. We will also be making use of MyData, which is owned by KakaoPay, to further scale up the targeting based marketing. We're looking at various different collaborative models that we can tap into. In terms of the KakaoPay online payment, not just we will be, you know, KakaoPay will be used in many other places, not just on KakaoPay ecosystem or on KakaoPay platform, but other specialized malls, including fashion, accessories, cosmetic, beauty mall, and travel, ticket, and cultural event, and digital content mall. In all of the domestic merchants, KakaoPay is currently being supported, and in order to provide a more enhanced payment experience to our user base, we will continue to diversify into other strategic partnerships going forward. 네, 다음 질문 가겠습니다. Next question, please. 다음으로 질문해 주실 분은 씨티증권의 정지훈 님입니다. The next question will be presented by Jihoon Jeong from Citi Securities. Please go ahead with your question. 아, 안녕하세요, 씨티증권 정지훈 연구원입니다. 질문해 주셔서 감사합니다. 오늘 질문 두 개 드리도록 하겠습니다. 첫 번째는 가이던스 및 take rate 관련한 질문 드리겠습니다. 올해 가이던스를 TPV 성장률보다 매출액 성장률을 높게 주셨기 때문에, 연초에는 평균 take rate이 개선하는 방향으로 가정하여 설정하신 것으로 유추됩니다. 지금까지 추이를 보면 TPV 성장률은 가이던스 차원을 잘 맞춰가고 있는 반면에, 매출액 성장률은 가이던스를 하회하고 있고, TPV 성장률보다 더 하회하고 있습니다. 증권 대출 등 여러 사업 부분에 걸쳐 take rate이 약화된 것을 보이는데요. 아, 연준의 전략적인 방향성을 take rate을 의도적으로 포기하더라도, user acquisition과 retention에 조금 더 집중하는 방향으로 바꾼 것인지, 아니면 연초에 예상하지 못했던 요인들이 발생해서 take rate에 영향을 준 것으로 해석해야 하는지 궁금합니다. 또 내년에 TPV와 매출액 성장률 트렌드를 어떻게 전망하시는지도 궁금합니다. 매출액 성장률이 TPV 성장률을 상회할 수 있을지, 아니면 최근 트렌드가 당분간 지속될 것으로 보시는지, 대략적인 범위 내에서 답을 공유해 주시면 감사하겠습니다. 그리고 두 번째 질문은 capital allocation 관련해서 질문드리겠습니다. 올해 시가총액 인수하시긴 하셨지만, 여전히 IPO 자금을 포함한 현금 여력이 충분하신 것으로 생각됩니다. 시가총액처럼 혹시 보고 계시는 M&A 기회가 추가로 더 있을지, 아니면 현재의 적자 비용 구조를 감안하여 운영자금에 대한 버퍼로서 크게 자금을 사용하지 않고 계속 가지고 가실지에 대해서도 궁금합니다. 감사합니다. Thank you. I'm from Citi. I would like to ask you two question. The first is on the take rate. Because you provided us with the higher revenue growth versus the, you know, TPV growth, we believe that you would have assumed that the take rate, the average take rate, will improve going forward. But if you look at the current trend, the TPV growth rate is aligned with the guidance that you shared. However, your revenue growth, TPV, revenue growth, excuse me, projection is falling short of the guidance. So, it seems like the take rate has been undermined across all of your businesses. So has your strategy shifted to one that focuses more on user acquisition and retention, even at the expense of growing the take rate? Or have there been some unexpected factors that have negatively impacted the take rate trend? And also, what is your outlook on next year's TPV and revenue growth rate? And also, do you think that your revenue growth can outperform the growth rate of TPV, or do you think that this current will continue for the time being? So that's my first question. Second question is, since we're at the end of the year, I would like to understand, what your plan is on capital allocation. Even if you acquire a Siebert this year, I'm sure that you still do have some ample, capacity in terms of the proceeds that you got from the IPO. Are you also looking at other M&A opportunities, or in light of the deficit or the loss-making structure at this point, would you just hold on to these amount of funds as a buffer? Would like to get your take on this. 안녕하세요, 질문 감사드립니다. 재무총괄 이성원입니다. 첫 번째 질문에 대해서 제가 답변드리도록 하겠습니다. 말씀하신 바대로 TPV와 매출액의 분기 단위 추이를 Y-o-Y 관점에서 살펴보면, TPV 성장률이 매출액 성장률을 상회하는 상황입니다. 반면, QoQ 관점에서 살펴보면, 지난해 사분기 사생 관련 회계처리 변경으로 불가피하게 증권의 탑라인이 크게 낮아졌던 시기를 제외하고는 매출액 성장률이 TPV 성장률을 대부분 상회하고 있습니다. 사분기 역시 QoQ 관점에서 성장의 지속이 예상되며, Y-o-Y 관점에서는 전년 증권 매출 기저 효과가 반영될 것으로 예상됩니다. 분기 성장 속도와 1분기 효과를 감안하여 예측해 보면, 2023년 연간 매출액 성장률이 TPV 성장률을 크게 하회할 것으로 해석할 필요는 없는 수준으로 판단하고 있습니다. This is the CFO, Aiden. I will respond to your first question. As you've mentioned, on a year-over-year basis, if you look at the TPV growth rate versus the revenue growth rate, TPV growth rate had been higher. However, on a QoQ basis, if you take out the impact from changes in the accounting treatment that we applied to derivatives in the fourth quarter of last year, which significantly drove down the securities revenue top line. If you take that into consideration and carve that out, revenue growth rate had actually been higher compared to the TPV growth rate. So in Q4, we believe that on a QoQ basis, such growth is expected to continue, and on YoY basis, there's going to be an impact from previous years' revenue, securities revenue, so there will be a base effect. If you consider the quarterly growth rate as well as the Q4, seasonal impact, I believe that there is no reason for us to expect that the revenue growth will be lower compared to TPV growth. 또한, 위원님 말씀 주신 바와 같이 TPV 성장률보다 높은 수준의 매출 성장률 달성을 위해서는 견고하게 성장 중인 결제 사업과 함께 사업 진입을 시작한 금융 서비스 분야의 높은 성장이 필요합니다. 따라서 2023년 사업 현황의 이해를 위하여 사업별로 환경 및 전략에 대해서 분리하여 설명드려보겠습니다. 결제는 엔데믹으로 인한 온라인 결제 시장 성장률 제한에도 불구하고, 가맹점 확장 및 수익화 전략을 동시에 추구하여, 시장 성장률 대비 높은 성장률을 유지 중이며, 오프라인 결제 시장에서 버거킹, 맥도날드 등 대형 푸드 프랜차이즈 키오스크에 카카오페이 결제 서비스 진입과 다양한 프로모션을 통해 의미 있는 성장이 진행 중입니다. 금융은 경쟁 환경에서의 우선 우위 선점을 위한 증권의 수수료이나 대외환경 악화 등의 사유로 대출 환경이 어려워 매출 성장이 더딘 부분은 보이지만, 대출은 신용 대환 대출 외 상품의 확장으로 매출 성장에 기여할 것으로 예상하고 있으며, 증권은 시장 점유율 확대가 커질수록 수익화 정도의 가속화가 추진될 것으로 보고 있습니다. Also, in terms of achieving the high, high rate of revenue growth versus TPV growth, a strong pillars of both our payment business, but also a solid growth of our financial service business is extremely critical. So I think it would be helpful for me to just provide you with the overall backdrop as to what the business environment would look like for us; it does look like for us in 2023 and going forward. Now, despite the constraints in the online payment market that we experienced from the pandemic, we had really focused on gaining both the expansion of the merchant and monetization. Thanks to those pillars, we were able to sustain an elevated level of growth rate. So we installed KakaoPay payment features to, across large franchise kiosk, including that of Burger King and McDonald's, and also implemented various different types of promotions. And for the financial services, it seems like the top line revenue growth is quite slow because of the headwind that we are seeing in the macro backdrop, as well as cut in the fees that we provide to gain a solid footing in the market. But we believe that going forward, in terms of the loan product, we will be able to see contributions from different types of loans, you know, on top of the margin loans as well as rollover loans. And I believe that once we are able to expand our market share, we will be able to further accelerate, the speed at which we are able to monetize. 또한 올해 10-11월, 11번가와 결제 서비스 도입 등 대형 가맹점 유치와 오프라인 신규 서비스 출시를 통해 안정적인 결제 성장 추이를 내년에도 이어갈 수 있도록 노력할 예정입니다. 금융은 대출과 보험이 확장된 상품과 증권의 시장 점유율, 늘어난 예탁금을 기반으로 내년에도 매출 성장에 기여할 것으로 예상하고 있습니다. 더불어 보험 서비스의 경우, 카카오페이 손해보험과 여행자 보험 상품 출시로 인한 매출 시너지 본격화되고, 사분기 이후부터 신규 상품 출시가 본격적으로 이루어질 것으로 보입니다. 이로써 2024년에는 TPV 성장률 대비 매출 성장률이 상회할 수 있도록 준비 중입니다. Also, we entered into 11Street as a payment method in the month of November, and we introduced offline new services, and we think that hence we will be able to sustain the growth that we see in our payment business. In the financial, digital finance services, through offering of insurance products and loan products, we will be able to increase our market share through KakaoPay Securities. Based upon the bigger size of the AUM that we are able to acquire, we think that this will help us further drive up top-line revenue. And if you look at KakaoPay Insurance, with the release of travelers insurance, we will see realization of top-line revenue come through. In Q4, we will go into full-fledged new product releases, and hence in year 2024, we are making preparations for 2024 so that we can achieve bigger revenue growth versus TPV. Hence, in 2024, we will be expanding our product offerings as well as our market positioning, which will help us generate earnings for us. Based upon the customers that we are able to acquire through the TPVs and through TRX or transaction, we will offer various different services, including financial services, as well as other services, which will help us further increase the service revenue and other revenue, which will then make contribution for us in growing the revenue growth versus TPV growth. Hello, this is Eddie. Responding to your second question, when we as a company look at different M&A opportunities and investment potentials, we first prioritize whether we are able to generate synergies. We want to make sure that acquired business actually helps with our core business growth, or it may open up a broader market for us, especially to adjacent business domains. So at this point, yes, we are quite proactively tapping into and looking at various different investment opportunities, and we are always open to acquiring overseas companies, just like we did with Siebert Financial. For the payment business, we are interested in identifying sub-markets that will provide us with some supplementary capabilities, and we are also interested in gaining next generation payment solutions in terms of technology and also finding ways for us to further make our costs more efficient across the value chain. In terms of the financial business, we are interested in businesses that will give us a bigger volume of transaction and business across, for instance, loan referral, securities and insurance business, and also are finding ways upon which we could really internalize various capabilities in both the upstream and downstream value chain. Now, having said that, at this point, we are facing a quite unstable global geopolitical situation, and there are a lot of uncertainties that's embedded in this economic cycle, and we are in a very high rate environment. So we are, at this point, most prudent in approaching these different investment opportunities. Next question, please. The next question will be presented by DongHyun Kim from Kyobo Securities. Please go ahead with your question. Thank you for taking my question. I have two questions. First has to do with your loan business. There's a concern that the high rate environment is going to extend for some time into the future. Would like to understand, whether this market, because the downstream market, the lending market, is somewhat going to slow, what impact that will have on your business? So what countermeasures do you have at KakaoPay since you're in the business of referring these loans? And also, you know, are there any ways or strategies that you are considering to employ to outperform the market compared to the overall loan market growth? Second question is on your advertisement business. I see that you ran advertisements on very popular luxury brands like Chanel, Trip.com, and Skechers back in Q2, and also we've seen advertisements of Disney, Tiffany's, and Breitling, so the big brands we'd like to understand what your advertisement performance looks like in the third quarter, and what is your mid to longer term advertisement, business direction? Hello, I'm Jason. I'm the head of business. Responding to your first question, looking back last year, it was less likely for KakaoPay users to take out credit loans, because starting October of last year, there was an upper cap that was applied to the overall household loans into the system. And that had an impact on the loan business performance of KakaoPay as well. This year, we are not seeing the same type of regulation being applied, but as we go into the second half of the year, people's concern regarding the mortgage loans and household loans have heightened. So some of the financial institutions are, at this point, controlling the amount of new loan originations in line of the delinquency rate, as well as the asset quality-related concern. And at this point, the government also had guided that in order to, manage the overall household loan exposure, when the institutions actually lend out 50-year maturity, loans, basically the maturity to be used in calculation should be limited to 40 years rather than 50, when they calculate the debt servicing ratio. And also, they have asked the financial institutions to stay, away from or be less active in extending loans with 50-year maturity to borrowers who own more than one, houses, and also where it will apply to collective loans as well. So we are currently in a situation where the lending market could actually freeze up. At this point, because of the delinquency ratio and asset quality issues, savings bank and capital banks are, at this point, under some pressure. However, from a longer term perspective, we see some of the second tier financial institutions actually increase the amount of loan that they originate. So we see difference and variance across different types of financial institutions. In the first tier financial market, basically, loan origination from internet-based banks, there's a certain requirement that they have to comply with, and with regards to extending loans to mid, to lower-rated borrowers. And so we see that, on that segment, we see, you know, we see loans being originated. So overall, compared to last year, where there was a very hard upper cap that was placed on household lending, the overall top line trend, we think, is going to start to improve as we enter into the fourth quarter. At this point, there are different segments of the market that they are working to expand different types of loan products, so we will also come up with a strategy whereby we diversify the portfolio of loans that are being provided, and finding the right soft spot for us to be able to drive further top line growth in specific areas where we can refer more of such credit loans. Because if you look at savings banks, they are, at this point, increasing the lending based upon the lending loans, which is guaranteed, which is backed by guarantee letters. Then for capital companies, they are expanding their auto loan product line up. So we have an opportunity to really identify some of the borrowers who have rollover demand. So that will be a key area for us in wanting to, you know, expand the top line revenue for us going forward. So we will find ways and really solidify the basis so that we can outperform the overall loan market growth. 안녕하세요, 서비스 총괄 박정원입니다. 두 번째 질문에 대해서 답변드리겠습니다. 카카오페이 광고는 매 분기 2자릿수의 매출 증가를 나타내고 있고, 3분기에도 지난 대비 16% 증가했습니다. 광고 집행 브랜드의 숫자나 광고 캠페인 진행 개수도 3자릿수로 증가했습니다. 광고 진행 카테고리도 다양화됐는데요. 이 분기가 럭셔리, 수송, OTT 업종이 주력 카테고리였다면, 3분기부터는 보험, 통신, 카드 업종 등이 추가되면서 업종이 더욱 다양화되고 있습니다. 마지막으로 광고 사업의 중장기 방향에 대해서 말씀드리겠습니다. 광고 사업은 크게 3가지 방향으로 진행하고자 합니다. 첫 번째로, 현재 보유하는 광고 구조를 확대하고자 합니다. 페이 서비스 내 존재하는 광고 구조들은 자체 서비스 발견과 홍보를 위해 할애하고 있습니다. 반면, 외부 광고를 위해 할애하는 비중은 낮은 수준인데요. 현재 광고 부킹률 등을 고려할 때 외부 광고 비중 확대를 통해서 매출 업사이드가 존재한다고 생각하며, 서비스 가치를 저해하지 않는 범위 내에서 순차적으로 지면을 확대하고자 합니다. 두 번째로는 결제 가맹점과의 시너지 강화입니다. 결제 가맹점 대상으로 카카오페이의 내부 데이터를 활용하여 높은 효율을 보여줄 수 있는 광고 상품을 제안하여, 이들이 결제 가맹점이자 광고주가 될 수 있도록 교차 판매를 강화하려는 것으로 이에 대한 내부 프로세스와 정책을 정비하고 있습니다. 세 번째로 타겟팅 로직을 적극 활용하겠습니다. 현재 카카오페이는 결제 송금 데이터와 천만 이상 가입자를 통해 확보한 마이데이터를 통해 유저에게 지금 필요한 혜택과 지금 필요한 금융에 대해 추천을 제공하기 시작했습니다. 해당 추천 로직을 더욱 정교화하고, 이를 광고 플랫폼과 통합함으로써 카카오페이가 제공하는 광고 상품의 효율을 전체적으로 증대시키고자 합니다. Hello, this is Jeff, responding to your question about advertisement. KakaoPay advertisement had been reporting a double-digit growth in terms of the top line, and if you look at Q3 on a Q on Q basis, we reported a 16% growth. And also in terms of number of brands where we ran advertisement and the actual number of advertisement campaigns, there was a triple digit growth versus previous period. And also we are diversifying into various different categories, including insurance, telecom, credit card, to diversify the types of advertisement categories that we run advertisements, like in Q2, it was mostly in luxury, transportation, and OTT. Lastly, I would like to also share with you a mid to longer term advertisement direction. First is we want to further maximize and increase the advertisement slots that we can operate. At this point, the advertisements slots are mostly used to promote our own services for better discovery. So we believe that there is an upside potential for us to leverage the third-party advertisement. Looking at the amount of ad slots that is currently booked, once again, there is a quite good upside potential, and so within the scope that doesn't undermine our service value, we will continuously and gradually expand the advertisement services. Second, we will seek to generate synergies with the merchants that we work with. We currently have our internal data, which we have built over the years, and we can make use of that data to provide insight to the merchants, and these merchants can also become our advertisers. We are, at this point, building out and the internal processes so that we can further strengthen cross-selling opportunities. Third is we will actively leverage targeting logic in order to maximize advertisement efficiency. We have MyData, which is underpinned by more than 10 million subscribers of KakaoPay's payment and money transfer, and we could leverage off of that data in providing the right benefit to our user base. We have started using this data to provide timely recommendations. We will continue to further refine these recommendation logic, and also by integrating the advertisement platform, we will also be able to further improve the efficiency of ad products going forward. 네, 이미 한 시간이 경과한 상황이라서 시간 관계상 마지막 질문 받도록 하겠습니다. We've spent a little more than an hour, so we will be taking the final question. Any questions? 마지막으로 질문해 주실 분은 DB금융투자의 정광명님입니다. The last question will be presented by Jun Jeong Ye from DB Financial Investment. Please go ahead with your question. 안녕하세요, DB금융투자의 정광명입니다. 저는 두 가지 질문을 드리겠습니다. 먼저 결제 관련 질문이고요. 이 분기 해외 결제 매출액 비중이 결제 내에서 10% 이상이라고 하셨는데, 3분기에는 비중이 어느 정도 상승했는지가 궁금합니다. 그리고 최근 중국인 관광객이 빠르게 늘어나고 있는데, 해외 결제 내에서 외국인이 한국에서 결제하는 비중이 어느 정도 되는지도 말씀 부탁드립니다. 다음으로는 카카오페이 손해보험의 차기 상품 라인업이 궁금합니다. 기사를 보니 해외 여행자 보험 상품이 출시 100일 만에 가입자 수가 15만 명을 돌파하면서 업계 1위권 수준까지 올라왔다는 평가를 받고 있는데요. 다음번 상품은 언제쯤 출시될 예정인지, 그리고 어떤 종류의 보험 상품을 준비하고 있는지 설명 부탁드립니다. 감사합니다. Thank you for taking my question. I have two questions. You mentioned previously that your cross-border payment accounted for about more than 10% of your total payment during Q2. Would like to know, you know, what's the percentage like? How much was there an increase in Q3? And also you said that there is more increases in the Chinese tourists... visiting Korea, what is the% of these foreigners out of the payments that is taking place within Korea? Second question is, what are the upcoming product lineup for KakaoPay Insurance? According to a news report, in just 100 days after the release of a traveler's insurance, the number of people who took out this insurance actually surpassed 150,000, and that brought you the KakaoPay Insurance is number two in the market. When can we expect to see another new product? And also what type of new product are you at this point developing? Hello, this is Jason. Responding to your question on cross-border payment. In Q3, as you've mentioned, cross-border payment actually showed an increase or the growth of 75% year-over-year and 18% QoQ. And so starting Q2, we've seen cross-border payment TPV be more than 10% of the total figure, and we are seeing that growth continue in this third quarter of this year as well. As we see more inbound travelers coming in from China, the offline inbound cross-border payment compared to second quarter of last year had gone up by a multiple fold. Compared to the second quarter of this year, it actually went up by 82%. But at this point, the level that we are seeing is only about 30% compared to pre-COVID. We believe that the more solid growth will start to feed through after the Q4 of this year, as well as well into next year. In the first half of the year, most of these inbound travelers were group tourists, and starting the second half of the year, we see more demand from FIT tourists, and we are expecting a steeper growth from that segment. For outbound payment as well, since the end of the COVID pandemic, we've seen heightened demand for overseas travels. So there's been a gradual and continuous increase in the TPV, not just in Japan, but other countries, including Italy, Thailand and China. And at this point, we are expanding our network connections to many other countries, aside from Asia, even into Europe, U.S., and Oceanian countries. Hello. This is Eddie, responding to your question about the upcoming product lineup of KakaoPay Insurance. Second half of last year, we started with the release of finance insurance and then expanded to overseas travelers insurance and also hole-in-one insurance in connection with Kakao VX platform, and have launched and sold these group insurances. Of all of these products, we, as you've mentioned, the Overseas Travelers Insurance, we've seen a significant increase in the number of policy holders above and beyond the market average. So it was about, on a monthly basis, 10,000 people, and then come July, August, it increased to 50,000, and in September, 60,000, even after the peak season had passed. So there's been a continuous upward trend. And then in month of October, we've seen an outperformance versus that of September. On top of that, we, at this point, and also at this point, what we are planning to do is that in December, we want to release and launch a group travelers insurance, whereby people can easily take out and subscribe to, these insurance products through a simplified, sign-up process. So another new product that is upcoming is an insurance for mobile phones. In line with our vision of being able to provide insurance coverage for daily risks that people can actually experience, we will differentiate the type of insurance features that we provide through this insurance for mobile phones. And in November, together with LG U+, we have already released an insurance for covering damages and losses regarding mobile phones. And within the end of the year, we will also expand and release a B2C type of a mobile phone insurance. So going forward, not just the travelers insurance and mobile phone insurance, we will also further expand into four other categories, including leisure and life and digital and embedded, to really play upon and leverage the differentiating points that only KakaoPay Insurance can offer, and really provide an insurance coverage that people could actually, regarding the daily risks that people could actually experience. Well, thank you very much. This brings us to the end of the earnings conference call for Q3 of 2023. If you have any further questions, please feel free to contact us at the IR team. Thank you very much!