KakaoBank stocks up as loan network availability increases

[Courtesy of KakaoBank]

Shares of KakaoBank Corp., a Seoul-based mobile-only bank, rose Tuesday morning over investors’ expectations that the bank will benefit from an increased availability in a mortgage loan network.

The stock’s price hit 29,150 won ($22) per share early Tuesday, up 4.49 percent from the previous trading day.

The rise followed an announcement by the Financial Services Commission (FSC) that the online one-stop loan transfer service, a digital platform set up in May 2023 to help borrowers get lower interest rates on credit loans, was made available for home-backed mortgage loans starting from January 9th, 2024.

With a broader range of services, borrowers were able to use this platform for mortgage loans on apartments and make a switch from financial companies and online loan providers, including KakaoBank.

“The platform’s increased availability could offer advantages to KakaoBank with high levels of assets, lower fund-raising costs, and a larger customer base,” NH Investment & Securities Co. analyst Jung Jun-seop said.

“Mortgages will contribute to an increase in loan sales at the mobile bank in 2024,” Jung added, explaining a raise in the target price of KakaoBank to 37,000 won per share from 31,000 won per share.