Siebert Announces Chairman and CEO Appointment, New Board Member, and Close of Kakao Pay’s $17.4 Million Investment in Siebert

John J. Gebbia Appointed as Chairman of the Board and Chief Executive Officer of Siebert

Kakao Pay’s Simon Shin Appointed to Siebert’s Board of Directors

Close of Kakao Pay’s Investment of $17.4 Million in Siebert on May 18, 2023

Kakao Pay, Fintech Subsidiary of Korean-Based Conglomerate Kakao Corp., Has Approximately 40 Million Registered Users and Offers Diverse Array of Financial Services

Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a diversified provider of financial services, today announced that John J. Gebbia has been appointed as Chairman of the Board and Chief Executive Officer of Siebert, effective 5/24/23, the appointment of Simon Shin to Siebert’s Board of Directors, and the close of Kakao Pay’s $17.4 million investment in Siebert.

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John J. Gebbia - Chairman and CEO of Siebert (Photo: Business Wire)

Background on John J. Gebbia

John J. Gebbia brings decades of leadership experience and expertise in the financial services industry to his new role and will be responsible for leading Siebert in its next phase of innovation and growth. Mr. Gebbia has been a member of Siebert’s Board of Directors since 2020 and served as a special advisor to Siebert’s Board of Directors from 2017 - 2020. After the purchase of Siebert by the Gebbia Family in 2016, Mr. Gebbia was instrumental in growing Siebert’s annual revenue from $10 million to over $67 million in 2021, the acquisition of the self-clearing brokerage StockCross Financial Services, Inc., and diversifying and expanding Siebert’s business lines.

Born in Sicily, Italy, and immigrating with his family through Ellis Island, NY, the beginnings of his business success started on the floor of the New York Stock Exchange. Mr. Gebbia has completed dozens of transactions over his career and held executive roles at companies such as Merrill Lynch; Walston & Company; and Jesup, Josephthal & Co. Mr. Gebbia’s most notable transaction was the acquisition of Kennedy Cabot & Co. for approximately $7 million, which he grew into the leading independent discount stockbroker in the U.S., and ultimately sold to Toronto-Dominion Bank 7 years later for approximately $155 million.

Mr. Gebbia and the Gebbia Family have also flourished in other business ventures in real estate, entertainment and sports. In addition to his business accomplishments, Mr. Gebbia has been married to Gloria E. Gebbia for over 60 years, and together they have 10 grandchildren and have raised three successful sons: John, Richard and David, who currently lead Siebert’s management team.

New Siebert Board Member Simon Shin and Close of Kakao Pay Investment

Siebert also announced that Simon Shin has been appointed to Siebert’s Board of Directors as part of the recently announced investment by Kakao Pay in Siebert, and that the $17.4 million investment from Kakao Pay closed on May 18, 2023. Mr. Shin brings over 15 years of experience working in global technology companies across various functions including strategy, investing, and engineering. He is currently head of Kakao Pay’s Payment Business Group and Corporate Development Office. Before Kakao Pay, Mr. Shin was a Vice President of Kakao Corp., a Director and Head of Open Innovation at Samsung Electronics, an Engagement Manager at McKinsey & Company, a Senior Research Scientist at Intel Corporation, and a Software Engineer at Naver Corporation. Mr. Shin received a B.S. in Electrical Engineering from Seoul National University and a Ph.D. in Electrical Engineering from Stanford University.

Management Commentary

“We are delighted to welcome our new Chairman of the Board and CEO, John J. Gebbia, as well as Mr. Shin to our Board of Directors at a pivotal time in Siebert’s growth story,” said Gloria E. Gebbia, controlling shareholder and board member of Siebert. “John J. Gebbia has a proven track record and will help Siebert successfully navigate into a new era and thrive going forward. He is a strategic leader with the capability to identify value and deliver impressive results and growth in current and new business lines. Mr. Shin from Kakao Pay is an accomplished executive with global experience and adds significant strength and depth to our Board of Directors. Mr. Shin’s extensive fintech experience will be critical in helping Siebert advance to the next era of technology and new offerings for our clients.”

“I am honored to take on this important role and lead Siebert forward,” said John J. Gebbia. “Siebert has evolved and grown significantly since its acquisition by the Gebbia Family, and especially in light of our new partnership with Kakao Pay, we truly believe this is only the beginning. I look forward to working closely with our experienced senior leadership team and employees to ensure the long-term success of the business. The appointment of Mr. Shin to our Board of Directors and the close of the first investment from Kakao Pay continue to solidify our partnership with Kakao Pay, and mark the beginning of a great chapter of growth for both firms.”

“I am very pleased to become a board member of Siebert and embark on a new journey of Siebert’s new chapter,” said Siebert’s new director Simon Shin. “I look forward to working closely with the new CEO, John J. Gebbia, and other members of Siebert’s Board of Directors to maximize the synergies between Kakao Pay and Siebert. With the advanced technology of Kakao Pay and Siebert’s extensive experience in the finance industry, this partnership will accelerate the growth of both firms.”

Notice to Investors

This communication is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.

About Siebert Financial Corp.

Siebert is a diversified financial services company and has been a member of the NYSE since 1967 when Muriel Siebert became the first woman to own a seat on the NYSE.

Siebert operates through its subsidiaries Muriel Siebert & Co., Inc., Siebert AdvisorNXT, Inc., Park Wilshire Companies, Inc., RISE Financial Services, LLC, Siebert Technologies, LLC and StockCross Digital Solutions, Ltd. Through these entities, Siebert provides a full range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions. For over 55 years, Siebert has been a company that values its clients, shareholders, and employees. More information is available at www.siebert.com.

About Kakao Pay

Kakao Pay is a TechFin subsidiary of Kakao Corp., spun off in April 2017. Kakao Pay has been building a lifestyle financial platform leading the transition into a wallet-less society where all we need is a smartphone to pursue any economic activity at any time in any place.

Since Kakao Pay launched the first mobile payment service in Korea in 2014, Kakao Pay has grown into the industry’s leading innovator, offering a diverse lineup of innovative financial services including online/offline payment, money transfer, membership, bill payment, and authentication. Starting with the investment service in November 2018, Kakao Pay has expanded its services from credit rating to loans and insurance providing easy access to financial services for everyone. The company is alleviating multiple inconveniences by offering daily financial services and accomplishing remarkable growth.

Cautionary Note Regarding Forward-Looking Statements

The statements contained in this press release, that are not historical facts, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.

These forward-looking statements, which reflect our management’s beliefs, objectives, and expectations as of the date hereof, are based on the best judgment of our management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions, global economic downturns resulting from extraordinary events such as the COVID-19 pandemic and other securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in our filings with the SEC, including our most recent filings on Forms 10-K and 10-Q.

We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.

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