'IPO Daeeo' Debut... KakaoBank Pursues Stock Market Listing

Kakao's 'Second Subsidiary IPO' Interest
Auditor Appointment and Lead Manager Selection Planned
Over 37 Trillion Market Cap in OTC Market

Yoon Ho-young, CEO of Kakao Bank

[Asia Economy Reporter Kim Min-young] KakaoBank, the second internet-only bank in South Korea, is planning an initial public offering (IPO). KakaoBank is considered a major IPO candidate in the financial sector, with its market capitalization on the over-the-counter market approaching that of the four major financial holding companies (Shinhan, KB, Hana, Woori).

According to the financial sector on the 24th, KakaoBank held a board meeting the day before and resolved to pursue an IPO. KakaoBank plans to apply for auditor designation and select an underwriting firm within this year to proceed with the IPO. KakaoBank stated, "Details of the IPO, such as the market to be listed on, target timing, and listing scale, will be reviewed going forward."

Following Kakao Games, this is Kakao's push for its 'second subsidiary listing,' drawing market attention already. KakaoBank started internet banking in 2017, following K Bank. It is the first-tier financial license issued by financial authorities in 24 years.

13 Million Customers in Just 3 Years

Within three years of starting operations, it has established itself as a 'bank in your hand' with absolute support from the 20s and 30s generation. KakaoBank has no offline branches and operates solely through its mobile application (app), targeting younger customers. It has secured 12.94 million customers.

Currently, the bank's capital is 1.8255 trillion KRW. As of the end of June, its asset size is 24.4 trillion KRW. The Basel III standard International Settlement Bank (BIS) capital adequacy ratio is 14.03%, which is as stable as commercial banks.

The delinquency rate (0.22%) is also low. As of the end of last month, deposit balances stood at 22.3159 trillion KRW, and loan balances at 18.3257 trillion KRW. Major portfolios include credit loans that simply notify loan eligibility and limits via the mobile app, jeonse and monthly rent deposit loans, emergency loans, and overdraft loans. Deposit products mainly consist of items that combine saving habits and fun, such as the '26-week savings' where small amounts vary weekly, and the 'Piggy Bank' that automatically saves change under 5,000 KRW when paying with a check card.

Will the IPO Boom Boost Stock Prices?

The securities industry expects KakaoBank to begin full-fledged listing procedures as early as the first half of next year. As a leader in internet banking and backed by its parent company Kakao (33.53% stake), KakaoBank has been regarded as a major IPO candidate.

Recently, following the IPOs of SK Biopharm and Kakao Games, whose stock prices soared, KakaoBank shares are trading at high prices on the over-the-counter market amid the 'IPO frenzy.' According to the unlisted stock trading platform 'Stock Plus Unlisted,' as of 9 a.m. on the day, KakaoBank's per-share price was 102,000 KRW, with a market capitalization reaching 37.2398 trillion KRW. This is comparable to the market capitalization of the four major financial holding companies (43.0652 trillion KRW as of the 23rd).

There are opinions that this over-the-counter price is a bubble. The securities industry estimates KakaoBank's value on the over-the-counter market to be between 5.4 trillion and 8.9 trillion KRW.

This content was produced with the assistance of AI translation services.