Internet bank seeks gov’t approval to operate

[THE INVESTOR] South Korea’s financial regulatory body said on Sept. 30 it will soon decide whether to issue a permit for the nation’s first online-only bank.

Two consortiums, one led by KT and the other by Kakao, are preparing to enter the banking sector with their technical expertise.

KT’s consortium submitted an application earlier in the day for the government’s approval for the establishment of K-Bank, the Financial Services Commission said.

The envisioned internet bank will be capitalized at 250 billion won (US$227 million), with more than 150 employees, according to the consortium composed of 21 firms. Its headquarters will be located in the central Seoul district of Gwanghwamun.

The FSC said it will make a decision on whether to issue a license by the end of this year after an internal review.

“K-Bank aims to start the business within this year,” it said.

The other consortium, led by Kakao, which operates the country’s dominant chat app KakaoTalk, is expected to submit an application in November or December.

(theinvestor@heraldcorp.com)