Consortiums backed by South Korean Internet giant Kakao and telecom operator KT have secured a preliminary license from the Financial Services Commission (FSC) to launch the country’s first internet-only banks.
For the first time in 23 years a new business has been allowed to foray into the country’s banking sector.
Go deeper with GlobalData
The two internet-only banks, Kakao Bank and K Bank, have been granted licenses on the grounds that they operate banking business in the form of electronic financial transaction business, and comply with qualifications to operate banking business including manpower, organisation and electronic facilities prior to applying for final licenses, FSC said in a statement.
Kakao Bank shareholders include Korea Investment Holdings with a 50% stake, while Kakao and Kookmin Bank each hold a 10% stake.
Major shareholders of K bank include Woori Bank, GS Retail, Hanwha Life Insurance, and Danal, each holding a 10% stake, while KT owns a 8% stake.
The two banks are expected to begin operation six months after receiving the final nod.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
