Seoul: Four consortia have submitted applications to establish internet-only banks, as announced by the financial regulator on Thursday. Preliminary approvals for these new banking entities are anticipated to be announced in June.
According to Yonhap News Agency, there are currently only three internet-only banks operating in the country: Kakao Bank, K-Bank, and Toss Bank. The Financial Services Commission has stated that it will conduct a thorough review of the applicants, focusing on their financial status, business plans, and overall feasibility. The outcomes of this evaluation are expected to be disclosed in June.
Among the applicants, the consortium led by Korea Credit Data (KCD) is considered the most promising. This consortium has attracted participation from Hana Bank and other major commercial lenders, which may strengthen its bid. If the required processes proceed smoothly, the new internet-only banks could receive business approval by the end of this year.