"Interest Rates Are Already Good"… K Bank Smiles Broadly at Bitcoin (Comprehensive)

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. Analysts attribute this to the highest-ever increase in users, driven by higher interest rates than commercial banks and the spotlight on Bitcoin.

According to the financial sector on the 4th, as of the end of January, K-Bank's deposit and loan balances stood at 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 balances were 1.85 trillion KRW and 1.26 trillion KRW respectively, this represents 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 was particularly remarkable. 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. 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 new customers averaged 140,000, this is 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, users must go through K-Bank, and with the Bitcoin craze in January, the number of users and deposits naturally increased.

Upbit's trading volume was 151,000 transactions in January last year but surged to 502,000 transactions in January this year. Especially on the 2nd, the 24-hour trading volume reached 5.4244 billion USD, equivalent to about 6.02 trillion KRW traded in a single 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 if deposited for just one day, up to 100 million KRW. Considering that major commercial banks generally offer mid-to-high 0% range interest rates for one-year fixed deposits, K-Bank guarantees up to 1 percentage point higher.

K-Bank has also taken an aggressive approach to its loan strategy. Starting immediately, it launched a linked loan service that introduces secondary financial institution loan products. Currently, the financial companies offering loan products through the linked loan service include Shinhan Savings Bank, DGB Capital, Eugene Savings Bank, JT Chin-Ae Savings Bank, and Hana Capital, with plans to expand further. Customers who receive loans from partner companies through K-Bank are exempt from early repayment fees regardless of loan period or execution amount. Additionally, they can receive interest rate benefits of up to 1% depending on their credit score.

A K-Bank official explained, "K-Bank's deposit, parking account, 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.