[Click eStock] "KakaoBank to Start Mortgage Loans in 1Q Next Year"

[Asia Economy Reporter Park So-yeon] Hi Investment & Securities has set the target price for KakaoBank at 81,000 KRW and issued a buy rating.

On the 6th, Kim Hyun-ki, a researcher at Hi Investment & Securities, stated in a report, "KakaoBank's growth momentum will continue," emphasizing, "The period to pay closer attention to is from the fourth quarter of this year, when non-face-to-face mortgage loans begin, through the first quarter of next year."

Researcher Kim Hyun-ki said, "The mortgage loan market is about 2.5 times larger than the credit loan market, so the ripple effect is expected to be greater than before," adding, "Considering KakaoBank's penetration in the credit loan market, its presence is expected to stand out in the mortgage loan market as well."

Kim also mentioned, "KakaoBank is focusing on risk management by participating in the establishment of a CB company," and "It is participating as the second largest shareholder in the establishment of a CB company for individual business owners, showing efforts to expand mid-interest rate loans, which is expected to serve as an opportunity to advance CSS when mid-interest rate loans increase in the future."

As investment points, he cited the continuous increase in traffic and strengthening of platform functions, as well as expectations for growth in the mortgage loan market.

KakaoBank's domestic bank credit loan market share was around 3% in the first quarter of 2018 but rose to 6% by the first quarter of 2021. Researcher Kim Hyun-ki explained, "If KakaoBank's market penetration rate in the credit loan market is applied to the mortgage loan market, the level of profit changes," adding, "Assuming a loan interest rate of 2.8% and a penetration rate of 6%, the interest income could increase by an additional 1 trillion KRW in this market."

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