K Bank of South Korea, Interested in Cryptocurrency, Plans Initial Public Offering During Bitcoin Surge

K Bank, a rapidly expanding neobank in South Korea, has attributed much of its growth to its cryptocurrency operations and is preparing to pursue an initial public offering (IPO).

On March 10, unnamed officials from the financial sector indicated that K Bank’s board of directors has approved this initiative.

The bank is reportedly aiming for a listing on the South Korean KOSPI stock market within the current year.

K Bank – A South Korean Crypto Success Story?

According to the news source Viva100, the institution is relying on the “anticipated advantages” stemming from a “recent surge in interest in Bitcoin” among South Korean retail investors enthusiastic about crypto.

K Bank offers “real-name” banking services (fiat on/off ramps) to Upbit, the largest cryptocurrency exchange in the country.

Trading volumes on the Upbit crypto exchange. (Source: CoinGecko)

During the COVID-19 pandemic, this collaboration was notably successful, as K Bank was the sole platform that enabled new users to register for accounts online.

Crypto accounts have remained popular since then, with accounts linked to Upbit continuing to constitute a significant portion of the bank’s revenue.

K Bank has experienced a swift increase in customer registrations during previous Bitcoin bull markets. The bank seems optimistic about further growth as Bitcoin continues to reach new all-time price highs.

The news outlet reported that a new CEO, digital finance specialist Choi Woo-hyung, has recently assumed leadership at K Bank, creating a “favorable internal and external environment for IPO preparation.”

A K Bank ATM. (SBS Biz News/YouTube)

More South Korean Crypto Firms to Launch IPOs?

The news outlet stated that the neobank has contacted “major securities firms” earlier this year.

In February, the bank reportedly “chose NH Investment & Securities, KB Securities, and the Bank of America (BofA) as preferred negotiation partners.”

The outlet also mentioned that the bank has initiated an “internal recruitment process” to establish a dedicated “IPO team.”

A previous attempt to take the bank public in South Korea ended in disappointment. K Bank passed a preliminary KOSPI listing screening while pursuing an IPO in 2022.

However, the bank’s plans were hindered by a stock market downturn in 2022. The sluggish market compelled it to effectively suspend its plans in February 2023.

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— Bloomberg Markets (@markets) March 6, 2024

Nonetheless, K Bank exceeded the 10 million customer milestone by the end of February 2024, coinciding with a rise in Bitcoin prices. The media outlet noted:

“The average number of new customers daily this year has increased more than three times as quickly as last year. The recent upward trend in Bitcoin is also serving as a positive factor for the K Bank [IPO bid].”

In 2021, during the previous Bitcoin bull market, K Bank reported revenues of $22.2 million in commission income from accounts linked to Upbit.

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— Bloomberg Markets (@markets) March 5, 2024

Late last year, Upbit’s closest competitor Bithumb announced plans to initiate its own IPO bid. With retail investors returning to the market in significant numbers, the trading platform and its bid are likely to be supported as Bitcoin prices continue to rise.

At the peak of the 2021 Bitcoin bull market, South Korean market analysts suggested that the Upbit operator Dunamu was planning to follow Coinbase onto the New York Stock Exchange.

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