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K bank meets annual goal in deposits

K bank has drawn 520 billion won ($463.1 million) in deposits in total within less than three months since its launch, surpassing its annual goal, according to news reports Thursday.

K bank, South Korea‘s first online-only lender, reportedly exceeded its earlier goal by the end of 2017 on Tuesday, after kicking off the customer service on April 3. It had aimed to attract 500 billion won in customer deposit and lend 400 billion won.

As of the end of May, K bank extended some 410 billion won in loans. On Tuesday, it lent some 480 billion won.

The internet-only bank has offered current savings accounts with maximum interest rates of 2 percent, about 0.5 percent higher than ordinary commercial banks.

The lender saves operating costs of brick-and-mortar branches and payrolls of employees. Bank users download apps on their smartphones to open an account or borrow money.

Celebrating the breakthrough, the bank launched a current savings account with a maximum rate of 2.3 percent on Thursday. The account will be sold until June 30 or until it draws 100 billion won in deposits.

Meanwhile, the bank temporarily halted the provision of overdrafts, which it had offered for those with an income.

Following K bank, South Korea eyes introducing the second of its kind, Kakao Bank, in August.

By Son Ji-hyoung (
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Korea Herald daum