Internet-only K bank decides to double capital by issuing new shares

By Lim Chang-won Posted : January 24, 2019, 14:49 Updated : January 24, 2019, 14:49

[Yonhap News Photo]


SEOUL -- South Korea's first internet-only bank, K bank, decided to double its capital by issuing new shares as it seeks to provide diversified loan services and easy lending to young smartphone users.

K bank said Thursday that its board agreed to issue new shares worth 591.9 billion won ($525.6 million) in common stock to increase its capital from 477 billion won to 1.07 billion won. The capital increase would be completed in April.

K bank is a consortium led by KT, the country's top telecom company. In December last year, IMM, a private equity fund, became a new shareholder with an injection of 47 billion won into the bank.

KT has vowed to increase its stake in K bank to a maximum limit of 34 percent under a new law governing internet banks. The current law, aimed at preventing conglomerates from dominating banks, limits the industrial ownership of banks. President Moon Jae-in has promised to ease regulations and allow two internet-only banks, K bank and Kakao Bank, to gain greater access to capital.


 

기사 이미지 확대 보기
닫기