Initial Thoughts on the K Bank IPO

• In this insight, we provide an update on the K Bank IPO, which is more likely in 1H 2025. K Bank is one of the largest Internet-only banks in Korea.

• A successful IPO of K Bank could have a positive impact on KT Corp (030200 KS) which is the indirectly the largest shareholder of K Bank.

• K Bank had total operating income of 51.5 billion won (up 328% YoY) in 1Q 2024. Operating margin improved materially from 5.7% in 1Q 2023 to 19.5% in 1Q 2024.

Photo by Jievani Weerasinghe on Unsplash

In this insight, we provide an update on the K Bank IPO, which is more likely in 2025, rather than in 2024. K Bank is one of the largest Internet-only banks in Korea. A successful IPO of K Bank could have a positive impact on KT Corp (030200 KS) which is the indirectly the largest shareholder of K Bank.

Due to the recent market turmoil, it appears that the K Bank IPO could be delayed to next year. K Bank already selected Bank of America (BofA), NH Investment & Securities and KB Securities as its IPO underwriters. At the earliest, the IPO could be launched in 4Q 2024 but we think the more likely timing is in 1H 2025.

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Major Shareholders

BC Card is the largest direct shareholder of K Bank with a 33.72% stake (as of end of 2023). Other major shareholders include Woori Bank (12.58%), BCC Kingpin LLC (8.19%), Khan SS LP (8.19%), NH Investment Securities (5.52%), and JS Shinhan Partners (5.12%).

KT Corp (030200 KS) is the largest shareholder of BC Card with a 69.54%. Therefore, KT is indirectly the largest shareholder of K Bank. BC Card acquired the 34% stake in K Bank in 2020 (from KT Corp as well as buying new shares of K-Bank). KT ran into regulatory problems of trying to become a controlling shareholder of K Bank and this forced KT to sell its stake to BC Card.