‘Upbit Dependence Could Derail New K Bank IPO Bid’ – Report

K Bank, a leading South Korean neobank, could be thwarted in its latest attempt to launch an initial public offering (IPO) by its “dependence” on its partner, the crypto exchange giant Upbit.

Per Busan Ilbo, K Bank will make a third attempt to go public following a board meeting held on March 12.

K Bank IPO: Will Third Time Prove a Charm for Neobank?

The bank first tried to launch an IPO in February 2023, before trying again in October 2024.

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— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) March 13, 2025

Following the second attempt, some South Korean media outlets appeared to point the finger at the Upbit deal, claiming that K Bank’s over-reliance on Upbit business was “to blame.”

K Bank was forced to shelve its bids on both instances. However, the bank committed to making a third attempt this year, as the expiry date for its regulatory approval approaches.

However, the media outlet quoted “market sources” as predicting that K Bank will struggle to get its IPO over the line once again.

They opined that K Bank’s “chronic dependence” on its banking deal with Upbit could prove a key factor.

Upbit: A ‘Monopoly?’

Upbit is South Korea’s biggest crypto exchange by market share and trading volume. During the coronavirus pandemic, the K Bank-Upbit partnership proved enormously successful.

South Korean law requires all fiat-trading crypto exchanges to strike deals with domestic banks. The latter provide exchange customers with social security number-verified fiat on/off ramps.

During the pandemic, the parties were the only banking-exchange duo able to offer new clients the ability to crypto wallet-linked bank accounts online.

At the time, other banks still required new customers to open in-person accounts in high-street branches.

Since then, other banks have followed suit, and have begun allowing their customers to open crypto exchange-linked bank accounts online.

But Upbit’s dominance has shown no sign of waning, with some lawmakers claiming that the exchange has become a de facto “monopoly.”

Long-term Profitability

The media outlet called K Bank’s “dependence” on Upbit “excessive,” adding that this was “one of the reasons” behind “poor demand forecasts.” The outlet wrote:

“The fact that a significant portion of K Bank’s profits depend heavily on Upbit raises questions about its ability to sustain its profitability in the long term. Upbit accounts for about 20% of K Bank’s deposit balance. There are concerns that it could experience a ‘bank run’ if there is significant volatility in the crypto market.”

The media outlet added that Upbit’s recent fiat deposit interest rate rise could also have a “negative impact on K Bank’s profitability.”

Last month, another media outlet reported that several “traditional” banks are monitoring the situation at Upbit and K Bank.

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Traditional Banks Circling

The duo’s current deal is due to expire in October, with several financial providers currently “weighing their options.”

If so, they will likely be buoyed by recent events at Bithumb, Upbit’s closest rival. The exchange recently ditched its partnership deal with NongHyup Bank in favor of an agreement with Kookmin, South Korea’s largest banking player.

The media outlet wrote that other factors could also hamper K Bank’s IPO bid. These include “sluggish stock market prices” caused by “internal and external uncertainties.”

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K Bank previously aimed for a 4 trillion won ($ 2.75 billion) valuation in its most recent IPO bid. “Market insiders” were quoted as claiming the valuation “should be lowered by at least 1 trillion won ($687 million).”

This could prove an issue, Busan Ilbo wrote. It explained that sources claim its financial investors are likely to object if it requests a lower valuation.