Hecto Financial announced on the 12th that it recorded its highest-ever consolidated sales and operating profit in 2025.
According to data disclosed by the company in its general shareholders' meeting notice, consolidated sales for 2025 were KRW 187.4 billion, and operating profit was KRW 15.6 billion. These figures represent a 17.7% and 17.2% increase, respectively, compared to the previous year.
Last year, Hecto Financial saw growth across its major businesses. Sales from its simple cash payment service increased 26.4% year-on-year, and its electronic payment gateway (PG) business also saw a 15.5% increase. Other revenue, including overseas settlement services, also increased 9.1% year-on-year. The expansion of its own membership-based services, such as "My Account Payment," is believed to have contributed to the improved profitability.
Net income decreased 1.7% year-on-year to KRW 8.8 billion, but this was due to the impact of "Big Bath" accounting, which included impairment losses on goodwill from subsidiaries. The company explained that Big Bath is an accounting strategy designed to reduce financial uncertainty by preemptively accounting for potential risk factors and is not directly related to actual cash outflows.
The company is also continuing its shareholder return policy. The agenda for this year's general shareholders' meeting includes a cash dividend of 220 won per share, a roughly 3% increase from the previous year. Hecto Financial is gradually increasing its dividend payout ratio in line with its four-year shareholder return policy announced for 2024. Furthermore, last year, it implemented a bonus issue, providing shareholders with approximately 3.6 billion won worth of treasury stock through the cancellation of treasury shares.
Hecto Financial plans to accelerate its global expansion this year. It will establish corporations in key overseas locations, promote stablecoin-based global payment and settlement services, and launch new services targeting the international remittance market.
The company is already participating as a public testnet partner for Arc, the stablecoin-dedicated mainnet currently under development by USDC issuer Circle. It has also joined Circle's stablecoin payment network, the Circle Payment Network (CPN), securing cross-border payment and settlement infrastructure.
CPN is known as a stablecoin-based payment network with the participation of approximately 20 Tier-1 financial institutions, including major global banks and payment institutions. Hecto Financial is the only domestic company participating. Furthermore, the network is pursuing expansion of its global payment ecosystem by establishing a partnership with Singapore-based stablecoin payment company TripleA.
Additionally, in preparation for the institutionalization of the Security Token Offering (STO) market, the company is also preparing to expand its account services for fragmented investment. The company has been building a foundation in this market by providing virtual account solutions to art fragment investment platforms.
Choi Jong-won, CEO of Hecto Financial, explained that last year, the company laid the foundation for global expansion by expanding its overseas presence and establishing a stablecoin payment infrastructure. He added that this year will be the time to build on this foundation and achieve tangible business results and generate revenue in overseas markets.
He added that he will pursue next-generation financial services, such as stablecoin-based global remittances and STO fund settlements that combine digital asset payments and foreign exchange functions, in line with future changes in domestic digital asset-related systems.
Recently, the fintech industry has seen an expansion of global financial services competition, centered on the development of stablecoins and digital asset-based payment infrastructure.
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