April 24, 2024

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[THE INVESTOR] Kakao Bank, Korea’s second internet-only bank, said on July 26 it will push to go public in two years to raise funds for future growth.

The plan was announced during a media briefing to mark the first anniversary of its establishment.

“By launching new services, we will further expand our business foundation. Based on such a consolidated basis, we will begin to prepare for an initial public offering starting next year,” said bank chief Lee Yong-woo.

Kakao Bank, controlled by Kakao, operator of the country’s dominant messaging app KakaoTalk, was launched on July 27, 2017, with paid-in capital of 300 billion won (US$267.60 million), and has implemented two capital increases since to bring the amount to 1.3 trillion won.

“The actual market debut will be made around 2020, though the time frame is flexible,” said co-chief Yoon Ho-young. “Through the IPO, our present and future value will be better evaluated, and we will be able to accelerate our future innovation.”

Aiming to grow into the leader in the sector, Kakao bank plans to come up with a variety of new services, such as overseas remittance and loan products, to boost customer convenience and diversify its portfolio.

Joining hands with Western Union, an American financial firm, the bank plans to introduce a remittance service in the first quarter of next year, where customers can send money overseas via their mobile device in 30 minutes with cheaper charges.

The number of countries where remittance is possible will grow from the current 22 nations to more than 200, according to the bank.

Various loan products will be rolled out starting in the fourth quarter of this year for customers whose credit rating is not high enough to easily borrow money from the country’s major lenders. 

“Inconvenience that the existing banking services caused to customers was where we’ve started. By making strenuous efforts for innovation, we will continue to offer whole new experiences,” Lee said.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)