Viva Republica, operator of South Korea’s popular peer-to-peer money transfer app Toss, was picked as the preferred bidder for LG Uplus Corp.’s payment gateway service unit, according to industry sources on Sunday.

Viva Republica reportedly has offered to pay 300 billion won ($253 million) for the LG Uplus unit, which commands the second largest share of the country’s payment gateway service market.

Viva Republica was the sole bidder for the auction of the unit, which kicked off late September.

The peer-to-peer money transfer app startup has recently turned aggressive in expanding its presence in the country’s financial industry. The company plans to build its own online payment network with the new payment gateway service unit in hopes to become a comprehensive fintech service provider. The company, in consortium with Standard Chartered Bank Korea, is also seeking to win a license for internet-only bank.

LG Uplus, the country’s third largest mobile carrier, has decided to sell its payment gateway service unit to focus more on its main business and fledgling 5G service.

By Choi Seung-jin and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]