[THE INVESTOR] The government is pushing to enable IT companies to hold up to 50 percent stake in Internet banks as part of the plans to strengthen the service sector revealed on July 5.

The government had attempted to make the same changes earlier, but failed due to resistance from the opposition bloc. Under current regulations, a nonfinancial company can hold only up to 10 percent of a bank.

The revised bill submitted to the National Assembly on June 16 will allow nonfinancial companies to hold up to 50 percent of online-only banks. Conglomerates led by members of the founding families, however, are excluded from the proposed changes. 



Along with online-only bank related issues, the government also plans to allow money to be transferred abroad through fintech providers from the second half of the year. At present overseas transfers need to be conducted through banks.

The government also said that artificial intelligence financial advisory services could be introduced as early as November. If introduced, AI advisors will be able to provide consultations or operate funds.

By Choi He-suk (cheesuk@heraldcorp.com)