Toss Bank's 100 Billion Won Paid-in Capital Increase, Capital Approaching 1 Trillion Won

Achieving the 5-Year Goals Set at Launch Within Just One Year in Sight

The third internet bank, Toss Bank, scheduled to launch on the 5th, is drawing attention from the banking sector. Even before its launch, it announced the release of groundbreaking interest rate products, including the highest deposit interest rate in the banking sector at 2% per annum and a minimum loan interest rate in the high 2% range, causing tension not only among other internet banks but also among commercial banks. Especially as financial authorities tighten regulations on household loans, leading to rising loan interest rates and restrictions on loan limits, Toss Bank's announcement of unsecured loans with a maximum limit of 270 million won is expected to attract demand from so-called "loan refugees." The photo shows the Toss Bank headquarters in Gangnam-gu, Seoul, on the 4th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Minwoo Lee] Toss Bank has decided on a paid-in capital increase worth 100 billion KRW. Since its launch, the paid-in capital has nearly reached 1 trillion KRW through three rounds of capital increases.

On the 22nd, Toss Bank announced that it held a board meeting the previous day and resolved to proceed with a paid-in capital increase of 100 billion KRW. This is the third capital increase in four months since the second one in February.

Through this capital increase, a total of 20 million new shares will be issued at a price of 5,000 KRW per share. Of the 20 million shares, 15 million are common shares and 5 million are convertible shares. The payment date for the capital increase is set for the 29th.

As a result, Toss Bank has secured 700 billion KRW in total over three rounds since its launch, bringing the total capital to 950 billion KRW. This means that the goal set at launch?to raise 1 trillion KRW over five years with up to 300 billion KRW additional capital increase annually?has been mostly achieved in less than a year.

With this increased capacity, Toss Bank's loan business is expected to accelerate further. Although it raised over 17 trillion KRW in deposits in a short period by offering 2% annual interest on demand deposits, the high interest costs make loan expansion urgent. Previously, Toss Bank resumed its credit business in January this year after being restricted by last year's household loan volume regulations. Following regulatory demands, it focused on loans to low- and medium-credit individuals among personal credit loan products, increasing their share to 35.2%. This is the only internet-only bank with a share in the 30% range.

A Toss Bank official said, "With the active support of our shareholders, we have secured additional capital to expand deposit and loan operations," adding, "Based on this, we will strengthen capital soundness and introduce innovative services to transform customer experience with the bank."