TechFlow news, October 25 — According to Cryptonews, South Korean internet bank K Bank has withdrawn its initial public offering (IPO) application just days before the scheduled listing date. Analysts suggest that K Bank's close ties with Upbit, South Korea’s largest cryptocurrency exchange, may be one of the primary reasons behind the IPO failure.
Lee Bok-hyun, head of the Financial Services Commission, said the authority will investigate whether K Bank adequately disclosed risks related to its relationship with Upbit. As of the first half of this year, deposits linked to Upbit accounted for 17% of K Bank’s total deposits. Lee Kang-il, a member of the Democratic Party of Korea, criticized the partnership as an "abnormal situation" and questioned whether K Bank could survive independently without Upbit.
K Bank stated the withdrawal is a "temporary delay," with plans to restart the listing process early next year. However, industry insiders remain pessimistic, believing little will change within the next six months. This marks the second time K Bank has pulled its IPO application. If it fails to regain investor confidence by February next year, the company may face negative repercussions from a "double IPO failure."
Previous report, according to Bloomberg, K Bank has withdrawn its $700 million-plus IPO in Seoul. The bank had originally planned to price the offering on Friday and conduct its IPO on October 30.
