K bank eyes IPO in 3 years with new funding

South Korea’s first internet-only bank K bank plans to go public in three years, according to industry sources Tuesday.

The company recently raised new funds worth some 400 billion won ($334.5 million) by issuing new stocks and convertible preferred stocks with its capital increasing to 900 billion won.

“Although the firm’s capital has grown with the new fundraising, it would need additional funds to bring operations back on track,” said a company official.

“After its new businesses and services become mature, the company will fine-tune the timing of the initial public offering.”

The company had internally planned for an IPO in 2021, but it had to be ditched due to capital shortage. The government authorities blocked telecom firm KT, once the largest shareholder of the bank, from acquiring a controlling stake citing its alleged violation of antitrust rules a few years ago. BC Card, a credit card processing firm owned by the network company, has taken over KT’s 10-percent common shares. The card company plans to raise its stake to 34 percent.

By Kim Young-won  (wone0102@heraldcorp.com)