Kookmin Bank smiles at the ‘Bithumb Effect’…Solo surge in idle funds

Demand Deposits Increased by 3.2 Trillion This Year

Stands Out Amid Declining Trend Across Banking Sector

According to the financial sector on the 22nd, as of the 17th, KB Kookmin Bank’s demand deposit balance stood at 154.682 trillion won, an increase of 3.207 trillion won so far this year. This contrasts with the overall decrease in demand deposits at domestic banks. Demand deposits at the five largest banks—KB Kookmin, Shinhan, Hana, Woori, and NongHyup—fell by 11.4307 trillion won over the same period, reaching 619.8028 trillion won. As deposit interest rates have continued to decline, the incentive to keep money in banks has weakened, and with the stock and real estate markets heating up, capital outflows from banks are accelerating.

The main factor is seen as the partnership with Bithumb for real-name accounts. On March 24, Bithumb switched its real-name account partner from NongHyup Bank to KB Kookmin Bank to facilitate crypto asset trading. Since January, with pre-registration of accounts underway, cryptocurrency investors have continued to join as new KB customers. There are reportedly about 2 million accounts linked to Bithumb. Thanks to this, even in a tough deposit environment, KB Kookmin Bank has found it easier to secure low-cost deposits compared to other banks.

An industry official commented, "The Bithumb real-name accounts played a big role in KB Kookmin Bank's solid deposit growth even during a period of falling interest rates," adding, "Collaborative accounts like the StarStar Account (with Starbucks), Monimo Account (with Samsung Financial Networks), and GS Pay Account (with GS Retail) have also become key drivers in attracting low-cost deposits."

The Bithumb effect can further be seen in the increase in users of KB Kookmin Bank’s app, ‘KB Star Banking’. As of the end of last month, the app recorded 13.63 million monthly active users (MAU), an increase of 600,000 from 13.03 million at the end of last year. MAU refers to the number of users who accessed or used the service at least once in a month.

KB Kookmin Bank expects to benefit even more from the Bithumb effect as Bitcoin prices surge. On the 14th of this month, the price of Bitcoin surpassed $120,000, hitting new record highs and maintaining its uptrend. Although it has seen some adjustment since passing $120,000, it is still trading in the $117,000 range as of today.

Another positive is that corporate cryptocurrency investment has become possible. Since last month, nonprofit corporations qualifying under certain conditions have been able to trade crypto assets, and financial authorities plan to allow ordinary corporations to begin trading in the second half of the year.

Reporter Jinseong Kim jskim1028@hankyung.com