Over 2 Million Customers Open Accounts with Kakao Bank

Published on 2017/08/13 | Source

More than 2 million customers have opened accounts with Korea's second online-only bank in the 13 days since its launch.

Kakao Bank said Tuesday that it also received 1.41 million applications for debit cards and deposits of W996 billion, while lending W770 billion (US$1=W1,127).

The bank opened its doors at 7 a.m. on July 27, and in just five days it drew more than 1 million customers.

K-Bank, the country's first online bank opened about three months earlier and has seen around 440,000 new accounts opened so far.

Kakao Bank experienced temporary connection problems at one time due to intense user traffic. The bank said it plans to add 140 more staff to its 200-strong customer service center to handle the overwhelming number of new customers. The number will eventually swell to 500.

Alarmed by the success, offline banks are scrambling to bolster their online banking services. One staffer with a commercial bank in Seoul said, "Traditional banks are feeling threatened by the success of online banks".