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| K bank CEO Shim Sung-hoon / Korea Times file |
K bank CEO Shim Sung-hoon's term has been extended once again for another three months.
Shim is set to serve his term through the end of March, when the bank holds its general shareholders meeting. In September, the internet bank extended Shim's term to Jan. 1, so he could undertake the task of increasing the troubled bank's capital.
In March last year, K bank sought to make the telecommunications giant KT, which is currently the second-largest shareholder, into the majority shareholder.
However, financial authorities halted the review for this request, citing that KT was being investigated for alleged violations of the fair trade act. Regulations state that an entity being investigated for such allegations cannot become a majority shareholder of another entity.
This put the brakes on the bank's plans to increase its capital by issuing new stocks, which prompted the bank to halt loans for a few months.
Shim sought to increase the bank's capital through other means in 2019, but failed.
Revisions to regulations that will ease the entry barriers for internet banks are pending at the National Assembly. If the bill is passed, authorities can resume their review for whether KT is eligible to be the bank's majority shareholder.
K bank is one of the country's two internet banks, along with Kakao Bank.
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