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| The logo of KakaoBank is seen at its headquarters in Pangyo, Gyeonggi Province, in this file photo. Yonhap |
By Lee Min-hyung
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| KakaoBank CEO Yun Ho-young |
The internet-only lender leaves open various possibilities before taking more concrete steps for its expansion into the new industry. The move reflects growing demand for cryptocurrency transactions here and abroad.
The young and innovative identity of the company also increases the likelihood of its future ties with one of the nation's crypto exchanges, according to market watchers.
"KakaoBank is positively reviewing plans on how we will be able to launch crypto-related services or businesses, as more customers identify crypto assets as a major financial investment area," KakaoBank CEO Yun Ho-young told investors during a recent conference call, hinting at the possibility of reaching a new partnership with crypto exchanges here.
In Korea, crypto exchange have to sign a business contract with a commercial bank, so they can operate a Korean won-based crypto transaction service. Only five exchanges ― Upbit, Bithumb, Coinone, Korbit and Gopax ― have been able to do so after they formed ties with banks here. Under the partnership, banks offer real-name accounts for the affiliated exchanges' customers.
Once banks sign such a contract with crypto exchanges, the lenders can enjoy a huge market benefit. For example, K bank, an internet-only bank, has been able to attract a large number of customers thanks to its partnership with the nation's dominant exchange, Upbit.
The number of KakaoBank customers reached 18.61 million as of the end of March this year, up by 620,000 from the end of last year. If the company follows in the footsteps of its competitor, K bank, KakaoBank is widely expected to attract many more customers.
If the crypto market becomes bullish, banks can also reap more commission profits from the affiliated exchange.
"Kakao has indirectly collaborated with Upbit, and holds expertise in the trendy tech area," a crypto industry source said. It will not be that hard for any Kakao subsidiary to launch crypto-related services thanks to its tech agility, he added.
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