We analyze the decay B --> phiK within the framework of QCD-improved factor
ization. We find that although the twist-3 kaon distribution amplitude domi
nates the spectator interactions, it will suppress the decay rates slightly
. The weak annihilation diagrams induced by (S-P)(S+P) penguin operators, w
hich are formally power suppressed by order (A(QCD)/m(b))2, are chirally an
d logarithmically enhanced. Therefore, these annihilation contributions are
not subject to helicity suppression and can be sizable. The predicted bran
ching ratio of B---> phiK(-) is (3.8 +/- 0.6) x 10(-6) in the absence of an
nihilation contributions, and it becomes (43(-1.4)(+3.0)) x 10(-6) when ann
ihilation effects are taken into account. The prediction is consistent with
the experimental data.