Toss eyes US listing

Viva Republica, the company behind the popular financial app Toss, is now aiming for a US market debut, pivoting from its initial plan to list in Korea.

“We are considering the US as our listing destination over Korea, but no specific plans or timeline have been set,” a Viva Republica official said Wednesday, adding that while they are focusing on the US, a debut there has not yet been set.

The confirmation follows reports from the previous day that Viva Republica has decided to drop its planned Kospi listing in favor of the US stock market.

The official also confirmed that the company has notified its local underwriters — Korea Investment & Securities and Mirae Asset Securities — of its decision to halt the IPO process in Korea.

The shift comes eight months after the financial technology giant first formalized its IPO plans in February by selecting underwriters, initially targeting a 2025 listing.

Viva Republica’s stock market valuation is estimated between 10 trillion and 20 trillion won ($7.2 billion-$14.5 billion), with its current value at just over 8 trillion won based on over-the-counter share prices.

Since its founding in 2013, Viva Republica has delivered financial services through its Toss app. Leveraging user-friendly and convenient mobile technology, the app has amassed a substantial user base, with 28 million total members and 19 million monthly active users as of June.

Initially focused on simple transactions, Toss has since expanded its services to include banking, stocks and payments, solidifying its status as the nation’s leading one-app fintech brand.

Viva Republica's main subsidiaries include Toss Bank, an internet-only bank, and Toss Securities, a digital brokerage, both of which operate through the Toss app. In July, the brokerage unit established its US subsidiary, Toss Securities Americas, to pursue global business opportunities.

While Viva Republica has not disclosed the specific reasons for its change in plans, speculations suggest that potential undervaluation in the Korean stock market and ongoing uncertainties in the local IPO landscape may have influenced the decision.

One concern is that the lack of comparable companies offering similar services in Korea could make it more difficult for Viva Republica to achieve an appropriate valuation.

Additionally, the move aligns with a growing trend of platform-based companies opting for US listings rather than pursuing local options, driven by greater liquidity and generally higher valuations for fintechs. South Korean e-commerce giant Coupang made its New York Stock Exchange debut in 2021, followed by Naver’s subsidiary Webtoon Entertainment in June. Travel booking platform Yanolja and fashion platform Musinsa are also eyeing potential New York listings.

The ongoing depreciation of the local stock market, despite government efforts to enhance value, further discourages companies from pursuing domestic listings. Recently, the internet-only K bank postponed its October IPO to next year due to insufficient demand.