An internet-only bank called K-Bank failed in recapitalization worth $133 million (150 billion KRW).
“According to current laws, occurrence of forfeited share is unavoidable for ordinary share unless every shareholder participates.” said K-Bank. “3 shareholders first paid convertible shares worth $26.7 million (30 billion KRW) that do not affect ratio of ordinary shares.
K-Bank was originally planning to increase its capital to $445 million (500 billion KRW) through recapitalization of $133 million. However, it is impossible for KT, which is its major shareholder, to participate according to current commerce and banking regulations. Practically every shareholder has to participate in recapitalization.
Commerce and banking policy was introduced to prevent industrial capital from monopolize financial market. It limits industrial capitals from owning too many shares in banks.
“We are going to quickly push for follow-up capital increase with our major shareholders.” said K-Bank. “We expect to form an environment where we can improve benefits for our customers and continue innovative growth based on convergence between finance and ICT (Information Communication Technology).
Staff Reporter Park, Jungeun | jepark@etnews.com