TechFlow news, December 30 — According to the Chosun Ilbo, the default rate on personal credit loans linked to cryptocurrency accounts at South Korea's K-Bank has reached a record high. Data obtained by lawmaker Kim Jae-seop from the National Assembly's Financial Services Committee from the Financial Supervisory Service shows that as of the third quarter of 2024, the default rate on such loans at K-Bank stood at 1.28%, with defaulted balances totaling 47.4 billion won.
As the fiat custodian bank for Upbit, South Korea's largest cryptocurrency exchange, K-Bank has seen particularly severe defaults among low-credit-score customers (KCB credit score below 50%) in its crypto-linked accounts. The default rate for this group reached 2.2%, with 34.4 billion won in defaulted amounts—more than three times higher than the 0.6% default rate among high-credit customers.
K-Bank plans its third IPO attempt by February 2025. While the recent cryptocurrency market boom may benefit the bank, its heavy reliance on Upbit and weak financial health indicators could hinder its listing. In the third quarter, the bank's non-performing loan balance reached 207.2 billion won, up 29.2% year-on-year, significantly higher than rivals KakaoBank (187.4 billion won) and Toss Bank (115.4 billion won). Industry insiders suggest K-Bank must improve its overall default rates by increasing mortgage lending and loans to high-credit customers to prepare for the upcoming IPO.
