Great Interest Rates and the Bitcoin Boom... K Bank's Deposits Surge by 750 Billion Won in January

Partnership with Upbit Since June Last Year
Double Increase Compared to Average Receipt Amount

Customer Growth Rate in January Also Doubled Compared to Average

[Asia Economy Reporter Seong Giho] Internet-only bank K Bank saw its deposit balance increase by 750 billion KRW in just one month of January. This is interpreted as a positive factor for acquiring new customers due to aggressive business strategies and a partnership with Upbit, which accounts for most of the domestic coin trading volume since June last year.

According to the financial sector on the 4th, as of the end of January, K Bank's deposit and loan balances recorded 4.5 trillion KRW and 3.35 trillion KRW, respectively. Compared to the end of June last year, before K Bank resumed capital increase and loan operations, when the figures were 1.85 trillion KRW and 1.26 trillion KRW respectively, this is nearly a threefold increase. During the same period, the number of customers also grew from 1.35 million to 2.47 million.

January's performance is particularly notable. K Bank's deposit and savings balance at the end of December last year was 3.75 trillion KRW, which increased by 750 billion KRW in January alone. Loans also increased by 360 billion KRW during this period. The number of new customers reached 280,000. Considering that the average monthly net increase in deposits and loans from July to December last year was 316.7 billion KRW and 288.3 billion KRW respectively, and the number of new customers was 140,000, this represents more than double the growth.

The market views K Bank's partnership with Upbit in June last year to open the 'KRW Deposit Service' as a decisive factor. To open a real-name account for trading on Upbit, customers must go through K Bank, and with the Bitcoin craze in January, the number of users and deposits naturally increased.

Upbit's trading volume, which was 151,000 transactions in January last year, surged to 502,000 transactions last month alone. Especially on the 2nd, the 24-hour trading volume reached 5.4244 billion USD, equivalent to about 6.02 trillion KRW traded in just one day.

Higher Interest Rates than Commercial Banks... Aggressive Loan Strategy

Higher interest rates than commercial banks also had an impact. K Bank's one-year fixed deposit interest rate is up to 1.3% per annum, and the one-year installment savings interest rate is up to 1.8% per annum. The 'Plus Box,' a 'parking account' (demand deposit account) where surplus funds can be stored, offers up to 0.7% per annum interest even for just one day on deposits up to 100 million KRW. Considering that the one-year fixed deposit interest rates of other major commercial banks are generally in the mid to high 0% range, this guarantees up to 1 percentage point higher rates.

K Bank has also taken an aggressive approach to its loan strategy. Starting today, it launched a linked loan service that introduces secondary financial institution loan products. Currently, five financial companies?Shinhan Savings Bank, DGB Capital, Eugene Savings Bank, JT Chin-ae Savings Bank, and Hana Capital?offer loan products through this linked loan service, with plans to expand further. Customers can also receive interest rate benefits of up to 1% depending on their credit score.

A K Bank official explained, "K Bank's deposit accounts, parking accounts, and savings interest rates are all competitive compared to commercial banks," adding, "Along with this, customer inflow through partnerships with various content providers such as Upbit has also significantly increased."

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