South Korea's first mobile-only bank, KakaoBank of Korea Corp., will raise 500 billion South Korean won via the issuance of new shares, Yonhap News Agency reported Aug. 11.

KakaoBank, which is also the country's second internet-only lender, will issue 100 million new shares worth 5,000 won apiece. The bank said it decided to raise funds pre-emptively to provide new services and products.

The move came a day after rival internet-only lender K bank announced an issuance of new shares amounting to 100 billion won.

KakaoBank, which began operations July 27, is led by a consortium of shareholders, including Kakao Corp., KB Kookmin Bank, Korea Investment Holdings Co. Ltd. and China-based Tencent Holdings Ltd.

As of Aug. 11, US$1 was equivalent to 1,143.53 South Korean won.