Back To Top

K-Bank to launch lending for home mortgages, insurance distribution

K-Bank said Wednesday it will launch lending services for home mortgages and non-life insurance distribution by the end of this year, expanding its business portfolio to intensify competition with traditional banks.

The Internet-only bank, which was launched in April with paid-in capital of 250 billion won, will also launch a 150 billion-won ($131.7 million) capital hike by the end of this year, after completing a 100 billion-won capital increase this month.

Shim Sung-hoon, CEO of K-Bank, told reporters that the bank aims to offer more convenient financial services to its customers.

"We will evolve into a banking service with more benefits and convenience," he said.

Screenings of applications for home mortgages will be conducted around the clock via the Internet or a smartphone application, Shim said.

Using its digital platform, K-Bank could lower fees for selling general insurance products, according to bank officials.

Currently, K-Bank's customers have access to about 16,000 ATMs without commission fees. 

The bank said it will add some 1,300 such ATMs by the end of this year.

K-Bank, which is led by KT Corp., the nation's biggest fixed-line Internet operator, has spent about 90 billion won in setting up infrastructure for its Internet banking system.

K-Bank's refinancing plan faced difficulties as some shareholders declined to subscribe for new shares. 

MDM, a property developer and parent of Korea Asset In Trust Co., a real estate trust firm, became a new shareholder of K-Bank as it invested 14 billion won into the bank's capital increase, bank officials said.

Shim admitted that some shareholders may not take part in the year-end capital increase. If so, K-Bank will search for new shareholders, he said, adding that the company aims to post a profit by 2020. (Yonhap)

catch table
Korea Herald daum