Hong Min-taek, CEO of Toss Bank, "Rumors are just incidents... No need to worry about liquidity"

Toss Bank addressed concerns about liquidity related to its "Interest First Deposit" product launched on the 24th, calling it "a kind of happening."

On the 27th, prior to a panel discussion held at the National Assembly Members' Office Building in Yeouido, Seoul, Hong Min-taek, CEO of Toss Bank, met with reporters and responded to voices expressing worries about Toss Bank's liquidity, such as a potential bank run (massive withdrawal of deposits). He said, "It seems to be something caused by financial market instability due to rumors like the Deutsche Bank crisis," and emphasized, "There is absolutely nothing to be concerned about."

CEO Hong explained, "The advance interest time deposit is a product that already existed in the traditional financial sector, and providing interest to customers in advance does not make a financial difference," adding, "The advance interest deposit product was launched not to secure deposits but to improve the inconvenient experience of customers receiving interest."

Regarding the possibility of discontinuing the product, he added, "This product is the second installment of the 'Interest First' series, and we want to brand it," and further stated, "We need to have a good discussion about the anxiety surrounding it."

Meanwhile, Toss Bank also sought to clarify that both its loan and deposit volumes have grown steadily. As of the previous day, the loan balance stood at 9.3 trillion KRW, and the deposit balance was 23.2 trillion KRW. In particular, loans increased about fourfold over one year from 2.6 trillion KRW in March last year. The loan-to-deposit ratio rose to approximately 44%, nearly four times that of the same period last year (12.4%). Toss Bank announced that it expects to return to profitability in the second half of this year.