SEOUL, Jan. 3 (Korea Bizwire) — South Korea’s first Internet-only bank, K-Bank, hopes to raise 500 billion won (US$469.7 million) in a new share sale during the first quarter of this year, the bank’s chief executive said Wednesday.
However, Shim Seong-hoon, CEO of K-Bank, said he did not set the target in the planned stock offering and the size of rights offer could be slashed.
“Our target is to sell as much as possible,” Shim told reporters.
To finance new business areas, K-Bank had planned to raise 150 billion won in a new share sale by the end of last year, but the plan was delayed as some shareholders were opposed.
K-Bank, which was launched in April last year with paid-in capital of 250 billion won, raised 100 billion won by issuing new shares in August last year.
Some shareholders of K-Bank, led by KT Corp., the nation’s largest fixed-line telecom operator, have shown a lukewarm response to another capital-hike plan.
South Korea bans non-financial firms from owning a larger than 10-percent stake in a financial firm.
If some shareholders fail to subscribe to a capital hike, KT said it will buy the forfeited shares. However, KT already owns an 8-percent stake in K-Bank, limiting the amount of new shares it can purchase.