K Bank readies third and possibly final KOSPI bid, betting on sustained market rally

SEOUL, November 11 (AJP) - K Bank may become the first company to debut on the KOSPI in 2026 as the country’s pioneering internet-only bank files its third — and likely final — preliminary prospectus, hoping the market’s bullish momentum lasts another two to three months.

According to the filing, K Bank plans to offer 60 million shares out of its 405.7 million total. The Korea Exchange’s review normally takes two to three months, putting an early-2026 listing within reach if approval is granted. NH Investment & Securities and Samsung Securities are joint lead managers.

The clock is ticking. Under agreements with its financial investors (FIs), K Bank must go public by July 2026. Failure to do so would allow investors to exercise tag-along or put options by October next year, making this effectively its last window to complete the deal.

K Bank previously cleared the preliminary review in 2022 but canceled its offering in the face of rapidly rising interest rates and a frozen IPO market. A second attempt in late 2023 was also withdrawn after weak demand during roadshows. The bank has since trimmed its target valuation to 5.3 trillion won ($3.6 billion) from roughly 7 trillion won.
Whether the current year-end rally will be enough to support a newcomer remains uncertain. The bank’s repeated last-minute withdrawals have already dented its credibility among investors.

Another lingering risk is its deep dependence on deposits sourced from customers of Upbit, the country’s largest cryptocurrency exchange. The two companies recently renewed their real-name account partnership for one more year, through October 2026, after the contract expired last month.

The Upbit-linked deposits have been a major growth driver, as K Bank supplies verified accounts to crypto traders. But renewal uncertainty hangs over the bank each time the contract comes due. Meanwhile, the bank’s early-mover advantage has largely faded as traditional lenders now operate fully competitive mobile platforms.

Market sentiment toward digital-only banks has also cooled. KakaoBank shares have dropped 44.5 percent from their June 24 peak of 38,750 won to 21,500 won ($14.7) as of Tuesday. Last week, Hana Securities cut its price target for KakaoBank to 32,000 won from 36,000 won, pointing to weaker-than-expected third-quarter earnings and slowing fee income. KakaoBank’s net profit fell 10.3 percent on-year to 111.4 billion won.

Hana Securities analyst Choi Jung-wook said sluggish loan growth, a broader decline in net interest margin and disappointing non-interest income weighed on performance, while operating expenses climbed with new service promotions and AI-related hiring. “Despite steady product launches such as its MMF Box and Kids Savings offerings, monetization remains slower than expected,” Choi wrote.

As it weighs its KOSPI push, K Bank has also been expanding its offline footprint. Starting in December, Seoul Metro’s Euljiro 4-ga Station — near the bank’s headquarters — will adopt “K Bank Station” as a secondary name under a paid naming-rights deal effective through December 2028.

Lee Jung-woo cannes2030@ajupress.com