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By Jhoo Dong-chan
K bank has decided to raise 120 billion won ($105 million) by issuing new stock.
The decision is expected to provide relief to the nation's first internet-only bank that has suffered from deteriorating financial soundness.
According to K bank, the lender decided to issue 24 million shares at 5,000 won each at a board of directors' meeting, Wednesday.
Of them, the 4,636,800 shares are convertible shares worth 23.1 billion won, while the remaining 19,363,200 shares are ordinary shares worth 96.8 billion won.
The new shares are expected to be first assigned to its existing shareholders _ KT, Woori Bank and NH Investment & Securities. And IMM Private Equity also participated in K bank's recapitalization.
IMM is a domestic private equity fund with accumulated operating assets of 3.3 trillion won from 14 equity funds. It also owns a 6 percent share of Woori Bank.
K bank expects to pool more capital as the National Assembly approved a bill in September to ease nonfinancial firms' ownership cap in internet-only banks.
The bank attempted to raise 150 billion won by issuing new stocks in July, expecting existing shareholders to buy new shares in proportion to their ownership percentages.
Due to differences among shareholders, however, K bank managed to pool only 30 billion won by issuing 6 million convertible bonds at 5,000 won each to the three major shareholders.
