KakaoBank aims increase its exposure to customers with poor credit, the internet-only bank said Thursday.
K bank, the first online bank to open in Korea, is issuing 1.25 trillion won ($1.12 billion) worth of new stock.
Kakao Bank on Thursday announced a temporary halt in the opening of overdraft accounts as major banks limit individual credit lines due to concern about rapidly increasing household debt.
Kakao Bank, one of two internet-only banks in Korea, is issuing new shares worth 250 billion won ($226 million) to Hong Kong-based private equity fund Anchor Equity Partners in its preparation to secure capital for its imminent
Kakao Bank, Korea’s largest internet-only bank, has taken the first steps toward going public by sending off a letter of request.
Kakao Bank’s net profit increased by 600 percent on year to 40.6 billion won ($35.5 million) in the third quarter, as more customers opened stock accounts and applied for credit cards via the online bank, the company announced Wednesday.
Kakao Bank is issuing 31.9 million new shares and selling one-third of them to a major U.S. hedge fund.
Kakao Bank wants teens to use its service and is offering a chargeable payment service for people too young to open bank accounts.
Internet-only banks are promising fat paychecks and a shorter-than-ever hiring process to bring in as many IT developers to get ahead in the digital transformation of finance.
Kakao Bank's net profit was up almost nine-fold in the second quarter on-year ahead of a possible public offering of stock in the second half of 2020.