SEOUL, Nov. 30 (Korea Bizwire) — Internet-only Kakao Bank said Thursday it posted a cumulative net loss of 66.8 billion won (US$61.4 million) by the end of September, hit by higher marketing costs.
Kakao Bank, which began operations on July 27, reported a cumulative operating profit of 17.3 billion won by the end of September, but spent a total of 84.1 billion won on marketing and commission charges.
At the end of September, Kakao Bank attracted deposits worth 3.3 trillion won and provided loans worth 2.6 trillion won, the bank said in a regulatory filing.
In September, Kakao Bank, led by Kakao Corp., operator of Korea’s dominant messaging app KakaoTalk, raised 500 billion won, as a part of a refinancing plan to bolster its lending business.
Korea Investment Holdings Co. and Kakao hold a 58-percent and 10-percent stake in Kakao Bank, respectively.
Kakao’s consortium also includes Kookmin Bank, eBay Inc. and China’s Tencent Holdings Ltd.