LG Uplus Corp., a major telecommunications company in South Korea, said Friday it has signed a deal to sell its payment gateway business to local fintech firm Viva Republica Ltd.
Under the agreement, LG Uplus will first spin off its payment gateway business and sell its entire stake in the unit to Viva Republica by the first half of 2020. The company didn't disclose the value of the deal, but the deal is said to be worth some 365 billion won ($314 million).
A payment gateway is an online payment solution that processes credit card payments for online and offline retailers.
Viva Republica operates popular financial service app Toss in South Korea. The company recently earned preliminary approval from the country's financial regulator for the establishment of a new internet-only bank with its consortium partners.
The fintech firm believes the acquisition will beef up its Toss platform, allowing users to have more convenient online purchases and transactions. In addition to the sales deal, LG Uplus said it has agreed with Viva Republica to expand cooperation in the areas of big data, marketing and financial services.
LG Uplus boasts 16 million subscribers in the nation, while Viva Republic's Toss also has some 16 million members. (Yonhap)