KT to Let BC Card Become K Bank's Majority Shareholder

BC Card will seek to become the majority shareholder in internet lender K bank despite a bill that has allowed KT to become to avail of that opportunity.

A bill passed Wednesday by the National Assembly revises internet banking regulations that barred KT, due to its violations on rules on fair trade, from acquiring more K Bank shares.

Such violation involved suspected collusion with other firms in a circuit line business project for which KT was investigated last year.

KT, which set up K bank, sought to boost its stake from 10 to 34 percent last year, to help the latter increase its capital base.

The lack of capital forced K bank to suspend operations beginning in April 2019.

In March, an earlier revision to internet banking regulations did not pass a National Assembly plenary session, prompting KT to decide to let its affiliate BC Card to become K Bank's majority shareholder.

"We are still in the process of getting documents ready for the authorities to review our eligibility to become the largest shareholder of K bank, but we will do this as soon as possible," he said.

The boards of KT and BC Card have agreed for the latter to acquire the former's 10 percent share in K Bank.

BC Card will also buy newly issued shares of K bank to increase its holding of the internet lender to 34 percent.