[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.
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