Kakao Bank raises W500b to extend loan business
[THE INVESTOR] Kakao Bank, Korea’s second internet-only bank, shore up its capital by 500 billion won (US$441 million) on Sept. 5 as part of its efforts to meet growing demand for loans.
All of the nine existing shareholders, including Korea Investment Holdings, Kakao and KB Kookmin Bank, were scheduled to pay for a total of 100 million new shares worth 5,000 won each on the day.
Kakao Bank was launched in late July with paid-in capital of 300 billion won and originally planned to raise around 400 billion next year.
But only two weeks after launch, its board decided to go ahead with the capital increase due to surging demand for loans.
As of Aug. 27, the bank extended loans worth 1.4 trillion won while attracting about 3 million accounts.
In order to maintain the bank’s financial soundness, the bank has slowed down its lending process, resulting in many customers complaining about being unable to access to the loan services for several days.
“After the capital increase, we expect to provide better loan services,” an official at the bank told The Investor. “We will do our best to minimize any inconveniences.”
By Park Ga-young (firstname.lastname@example.org)