Hyundai Securities to sell stake in K Bank

[THE INVESTOR] Hyundai Securities plans to sell its stake in K Bank, one of Korea’s first Internet-only banks, the firm said on June 23.

The brokerage firm is the third-largest shareholder of K Bank, to be launched by No. 2 telecom operator KT, with 10 percent shares.

It will seek a board approval for the transaction at a meeting on June 28.

“We gained the consent from K Bank’s other shareholders regarding the share sell-off,” a Hyundai Securities official said. “We will begin the disposal procedure in earnest after the board’s decision.”

The move comes as KB Financial Group’s acquisition of Hyundai Securities in April will cause a conflict of interest, since its key subsidiary KB Kookmin Bank is a major shareholder of Kakao Bank, another Internet bank picked for a government-led pilot program.

Kakao Bank and K Bank will offer financial services from deposits, lending and credit cards to foreign exchange transactions through their online platforms only -- the first of their kind in Korea’s 23 years of financial history.

The price for the 10 percent shares in K Bank is expected to be around 25 billion won (US$21.7 million) on par with the amount of investment by Hyundai Securities.

Several brokerage firms, including NH Investment Securities, are said to be keen on buying the shares in the mobile-only bank.

By Park Han-na (hnpark@heraldcorp.com)