KB Securities signs a fintech venture deal with Zum

KB Securities CEO Park Jeong-rim left and Zum internet CEO Kim Woo-seung take a commemorative photo at the brokerage firm headquarters in Yeouido, western Seoul. [KB SECURITIES]

KB Securities signed a memorandum of understanding Wednesday with Zum internet in a bid to expand into the financial technology business.

Under the proposed "Project Vanilla" joint venture, the two companies will develop various financial services and a mobile stock trading platform, which the company explains will be similar to Menlo Park, California-based Robinhood. The joint venture was approved by the Financial Services Commission on Sept. 9.

The brokerage firm decided to partner with Zum as it started to see a growing number of investors under 40 accustomed to using online financial services.

The two plan to use the machine learning technology, security systems and customer data accumulated by Zum and ESTsoft, its largest shareholder, and the financial expertise of KB Securities.

The venture plans to increase customer convenience through its stock trading platform and set an example for other financial institutions that plan to partner with ICT companies in the future.

BY KANG JAE-EUN [kang.jaeeun@joongang.co.kr]