Consortiums led by information technology service giants Kakao Corp. and KT Corp. won a preliminary license to launch South Korea's first Internet-only bank Sunday, the financial regulator said, opening the new business market in the long-slumping banking industry.

The Financial Services Commission said it gave approval to Kakao Bank and K-Bank after a two-month review of their qualifications, including their financial stability, shareholdings structure and customer service plan. It had accepted applications from three bidders, including I-Bank led by online shopping mall operator Interpark Corp. on Oct. 1.

An Internet-only bank, or a direct bank, is a bank that offers financial services online without brick-and-mortar locations. Such banking emerged in the 1990s with the advent of online banking technology. (Yonhap)