[Edaily Reporter Kang Min-koo ] kakaopay(377300)has released its 2025 ESG Report, which details the achievements of its AI-driven transformation—ranging from work practices to the entire business process—and its vision for sustainable management.

This is kakaopay’s fourth ESG report. It details the sustainable management activities and achievements of kakaopay and its subsidiaries—kakaopay Securities, kakaopay General Insurance, and Paymint.

This year’s report reflects the direction of kakaopay’s ongoing “AX (AI Transformation)” initiative. kakaopay is going beyond merely adopting technology to redesign its corporate structure around AI, and the report details the “AI-driven financial innovation” stories and sustainable management achievements resulting from this effort.

The trend toward the AX transformation is also reflected in kakaopay’s “dual materiality assessment.” After analyzing the simultaneous impacts of its business activities on the external environment and society, as well as on financial value, the company selected “AI-based financial innovation” as a new material issue, in addition to its existing core issues (personal data protection, financial consumer protection, and climate change response). kakaopay disclosed the status of its responses to each issue in accordance with the ISSB (International Sustainability Standards Board) sustainability disclosure framework, aligning them with the company’s governance, strategy, risk management, and metrics and targets.

In line with the AX transformation, the company has also enhanced the accessibility and competitiveness of its disclosures. Reflecting the recent trend among global investors and ESG rating agencies to actively utilize AI for corporate data collection and analysis, kakaopay introduced the “AI & Human Dual-Readable” concept. By refining its data structure and disclosure system to ensure that not only humans but also AI—as a second reader—can accurately perceive vast amounts of ESG information without distortion, kakaopay ensured that its ESG performance is clearly communicated even in an AI-based data collection environment.

Furthermore, under the vision of “All everyday finance through kakaopay,” the company established a new ESG strategy framework this year to concretize its direction for sustainable management. Through a special section in the report, kakaopay conveyed its unique commitment to creating social value by connecting people and their daily lives through financial technology.

KakaoPay’s internal and external ESG achievements over the past year are also notable. In the Environmental (E) sector, the company conducted climate scenario analyses and natural capital risk assessments, and introduced a carbon accounting platform to enhance the consistency of environmental data. Additionally, approximately 21% of its electricity consumption last year was sourced from renewable energy.

In the Social (S) category, the company established mid- to long-term goals in the areas of human rights, occupational safety and health, and mutual growth. Both major subsidiaries, kakaopay Securities and kakaopay General Insurance, obtained information security certifications. The company also conducted AX transformation training for employees to support company-wide efforts to strengthen AI-based work capabilities.

In the Governance (G) category, the company operated a system for managing a pool of CEO candidates and sought approval for the compensation structure for inside directors. It also established governance frameworks to support the AX transformation, thereby strengthening the foundation for sustainable growth.

As a result, kakaopay received an overall “A” rating in last year’s ESG evaluation by the Korea ESG Standards Institute. It was also included in the DJ BIC (Best in Class) Korea Index for the third consecutive year in S&P Global’s Corporate Sustainability Assessment. In February of this year, it received a “Prime” rating in the ESG evaluation conducted by ISS (Institutional Shareholder Services), the world’s largest proxy advisory firm.

Shinwon, CEO of kakaopay, stated, “AI has evolved beyond a mere technical tool to become a core leadership factor that determines a company’s sustainability and future competitiveness.” He added, “Through the responsible use of AI technology and continuous financial innovation, kakaopay will lower financial barriers and pursue sustainable growth based on trust in collaboration with all stakeholders.”