Kakao Corp, a major South Korean Internet conglomerate, has established a subsidiary of the company in Singapore to attract foreign investments with cryptocurrencies, Seoul-based media outlet News1 reported Nov. 21.
According to the article, Kakao Corp established the brainchild of Kakao subsidiary Ground X, the corporation’s blockchain platform Klaytn, in Singapore yesterday. The media outlet also states, with reference to the the Singapore Chamber of Commerce, that Kakao Corp is considering establishing another special corporation in Singapore aimed at managing the investments.
In October, Kakao Corp had released Klaytn’s testnet ahead of its formal launch set for the first quarter of 2019. Last week, Kakao Corp had announced a new partnership agreement with stablecoin project Terra that will use Klaytn as a blockchain-based payment system, CryptoNewspeople reported Nov. 14.
Kakao Corp is expected to attract about 100 billion won (approximately $88 million) worth of investment from venture capital and institutional investors through Klaytn in December. The article continues:
“This investment contract seems to include not only sales of simple tokens but also Kakao blockchain business cooperation. The reason for the establishment of an investment corporation in Singapore is that it is easy to raise funds and has a large tax benefit.”
Back this summer, Golden Gate Ventures (GGV), one of the leading venture capital firms in Southeast Asia based in Singapore, launched a $10 million fund for investments in companies related to the blockchain and cryptocurrency industries, CryptoNewspeople wrote Aug. 10.