Value context and insight. lkm@koreatimes.co.kr
K bank on track to brisk success
By Lee Kyung-min
By Lee Kyung-min
K bank has drawn 1.2 trillion won ($1 billion) in equity financing, increasing its total capital to over 2.1 trillion won, comparable to rival Kakao Bank which has drawn a total capital of 2.3 trillion won.
The 1.2 trillion won is about double the initial estimate of 600 billion won, an indication that many investors have joined what they consider a major opportunity to ride on the rapid growth of the country's No. 2 internet-only bank.
New investors include U.S.-based private equity fund Bain Capital, a local player MBK Partners and an alternative investment management subsidiary of Shinhan Financial Group.
The growth of K bank has led to a balance exceeding 12 trillion won, up from 8.72 trillion won in March, driven by an increase in loans to mortgage seekers.
Also bolstering the internet-only lender's success is a partnership with Upbit, a cryptocurrency exchange, amid a rapid spike in demand for digital coin transactions over the past year.
The lender's initial public offering (IPO) is expected as early as the second half of 2023, with its market capitalization estimated at 8 trillion won at least.
As of 2020, BC Card has a 34 percent stake in the bank, followed by Woori Bank (19.9 percent), and NH Investment & Securities (10 percent).
Other shareholders include IMM Private Equity (6.7 percent) and Hanwha Life Insurance (3.8 percent). GS Retail, a subsidiary GS Group, has a 3.8 percent stake. Two online payment service providers ― KG Inicis and Danal ― each have a 3.1 percent stake.
K bank was launched in April 2017 with 250 billion won in capital, and has since increased in size to 900 billion won through seven rounds of equity financing. It reported a net loss of 105.4 billion won in 2020, falling deeper into the red from a net loss of 100.8 billion won a year earlier.
The number of K bank subscribers has recently surpassed 5 million, up from 3.11 million in February, a further jump from 2.47 million in January.