Asia Express - Consumer Electronics
Kakao Bank Enjoys Nearly 800% Growth in Q2 2020
August 06, 2020

Kakao Bank, a Korean internet-only bank or so-called online bank, recently announced that its monthly active users grew 10.5% from last December to 11.73 million in late June, the Economic Daily News reported on August 6. As of June 30, the total of Kakao Bank’s account holders reached 12.5 million while its app users accounted for 44.3% of the total economically active population in Korea. bank’s app is most popular among those aged between 20 and 40. The coronavirus pandemic has led to an increase in the number of new bank accounts since May. The On top of that, its partnerships with four local credit card companies, including Shinhan Card and Samsung Card, also facilitated the bank to register a total of 260,000 credit cards as of 31 July. Driven by the increase in bank accounts and stock trading accounts, in profits from loan services, and in the issuance of credit cards, the bank witnessed a whopping 793.3% increase in net profits to 45.3 billion Won (US$38 million; US$1 = 1,163 Won) from April to June, 2020, up from merely 9.6 billion Won (US$8.25 million) in the same period last year. The bank also revealed its plan to initiate IPO (Initial Public Offering) process in the second half of 2020.