KakaoBank Corp. unveiled plans to boost shareholder returns to 50% from 20% as South Korea’s largest digital lender sets its sights on aggressive growth to compete with traditional banks.
The internet-only bank aims to expand its asset base to 100 trillion won ($77 billion) by 2027, up from the current 62 trillion won. This expansion strategy includes increasing its customer base to 30 million from current levels and diversifying revenue streams beyond traditional lending.
The Seoul-based company wants to lift non-interest income to more than 40% of operating revenue through new business initiatives including overseas expansion and potential acquisitions. KakaoBank’s CEO Yoon Ho-young said the company will share growth benefits with shareholders more actively.
The digital lender, which leverages its connection with Korea’s dominant messaging app KakaoTalk, is targeting an annual operating profit growth of 15% and aims to maintain return on equity above 15% by 2030. The current ROE stands at 7.55%.
The increased dividend policy will take effect if the bank’s BIS ratio exceeds the average of major commercial banks over the next three years. The bank plans to roll out new deposit products and expand services for foreign customers while strengthening its platform business.
