South Korea’s Financial Services Commission (FSC) has given the approval for the establishment of the country’s first internet-only bank.

The new digital bank, known as K-Bank, is expected to be operational by the end of January or early February 2017, following preparatory works.

The bank, led by a consortium of 21 shareholders including Woori Bank and KT, will be the country’s first newly approved bank since 1992.

The country’s other digital-only lender, Kakao Bank, is now bracing up to apply for final approval in the end of 2016.

Both K-Bank and Kakao Bank received preliminary licence in November 2015 from FSC to launch internet-only banks, on the condition that they operate banking business only in the form of electronic financial transaction business.