Financial regulators are set to approve Woori Financial Group’s plan to spin off its credit card unit from Woori Bank later this month, sources said Wednesday.

The Financial Services Commission and the Financial Supervisory Service held a senior-level meeting on Wednesday to fine-tune details in a preliminary step to endorse Woori Financial’s proposal to launch a stand-alone credit card operation.

An FSC official said regulators will reach a final decision in the coming panel discussion, slated for Jan. 16, adding that the final decision-making process may be postponed to later regular meetings on Feb. 6 or Feb. 20.

Market insiders in the credit card industry predicted that Woori Card could go into operation as early as March, stressing that Woori Financial seems to have already gained regulatory approval.

“Once financial authorities okay the preliminary request, Woori Financial will apply for regular approval immediately and begin setting up for regular operations,” a source said.

The FSC’s former stance was that Woori Card’s affiliation may undermine the state’s financial policy that restricts excessive card expenses, card loans and new sign-ups.

However, with the amended credit financial act that went into effect in December 2012, the FSC is optimistic about the issue, experts said.

The amended law states that credit card firms’ total capital cannot exceed the limit posed by the FSC, which is 10 times the corporate asset.

Meanwhile, an official from the Credit Finance Association, a lobby for the credit card industry, said there is a growing possibility that Nonghyup Financial Group will also be successful in gaining regulatory endorsement for its project to open a credit card business.

In 2010, Hana Financial Group spun off with Hana SK Card and launched new marketing activities in partnership with several SK Group affiliates.

In 2011, KB Financial Group relaunched its credit card firm as stand-alone after it had been merged with its bank since 2003.

Shinhan Card, a subsidiary of Shinhan Financial Group, secured the No. 1 position after acquiring formerly debt-ridden LG Card.

By Chung Joo-won (joowonc@heraldcorp.com)