Seoul: South Korea's first internet-only bank, K-Bank, has announced its plans to go public next month, following previous delays and cancellations of its initial public offering (IPO) on three separate occasions. "We will focus on growth with the goal of accomplishing a return on equity of 15 percent," stated Choi Woo-hyoung, the bank's chief executive officer, during a press conference. He added that the bank aims to lead financial innovation in South Korea.
According to Yonhap News Agency, K-Bank was founded in 2016 as the nation's first web-only bank, part of government initiatives to promote competition and deregulation in the financial sector. The bank is operated by KT Corp., a mobile service provider. As of last year, K-Bank had amassed 15.5 million customers, with outstanding loans and deposits each totaling 18.4 trillion won (approximately US$12.6 billion) and 28.4 trillion won, respectively.
The bank plans to utilize the proceeds from the IPO to invest in future business ventures, including digital assets. It intends to expand its financial product lineup to incorporate investments such as gold and alternative assets. For virtual assets, K-Bank is exploring partnerships with Thailand and the United Arab Emirates to develop infrastructure for money transfer and payment systems using stablecoins.
Additionally, K-Bank aims to enter the small and medium-sized enterprise sector while enhancing shareholder returns through investor-friendly policies. "We plan to actively review policies to improve investors' interests, such as the introduction of dividends and cancellation of treasury stocks," Choi noted.
Under the IPO, K-Bank intends to offer 60 million shares priced between 8,300 won and 9,500 won. The bank is scheduled to make its debut on the benchmark KOSPI market on March 5.