Kakao Bank makes W500b capital raise
[THE INVESTOR] Kakao Bank, Korea’s second internet-only bank, implemented a 500 billion won (US$441.90 million) capital increase on Sept. 5 as a part of a refinancing plan to bolster its lending business.
Kakao Bank, launched in late July with paid-in capital of 300 billion won, has attracted about three million accounts and extended loans worth 1.4 trillion won as of Aug. 27.
The capital raise was made by issuing 100 million new shares worth 5,000 won each.
Major shareholders of Kakao Bank, including Korea Investment Holdings and Kookmin Bank, were said to have subscribed to the capital increase, according a market source.
Kakao Bank’s consortium also includes eBay and China’s Tencent Holdings.
Korea bans non-financial firms from owning a larger than 10-percent stake in a financial firm.
If some shareholders fail to subscribe to the capital hike, KT will buy the forfeited shares. However, KT already owns an 8-percent stake in K bank, limiting the amount of new shares it can purchase.
By Alex Lee and newswires (email@example.com)