April 27, 2024

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[THE INVESTOR] Hasys, an affiliate of Kakao -- operator of the nation’s most popular mobile messenger KakaoTalk -- said on July 13 that it plans to receive funds worth around 6 billion won (US$5.33 million) to further expand its Kakao Hairshop business here.

The company plans to receive funds by issuing new shares worth around 2.9 billion won and 3 billion won convertible bonds. Three different associations operated by KB Investment will acquire the shares and bonds.

Established in 1992, Hasys currently manages a network of 9,718 hair salons, skin care shops and nail salons here with almost 70 percent market share in the beauty networking market. In 2015, Kakao acquired a 51 percent stake in the startup to expand into the business, and a year later, it launched the Kakao Hairshop app, which connects customers with hair salons.

Industry sources speculate that the money will be used to develop its fast-growing beauty business to see some profit. Sales of Kakao Hairshop reached 6.42 billion won, while posting 373 million won operating loss.

Currently, Hasys CEO Hwang Young-ho is the second largest shareholder with 23.71 percent stake.

By Song Seung-hyun (ssh@heraldcorp.com)