South Korea‘s financial regulator is expected to receive applications in October for a third internet bank, according to financial authorities on July 8.
In May, the Financial Services Commission rejected applications by two consortia to set up the nation’s third internet-only bank, citing a lack of fundraising preparations and technical progress. One consortium is backed by financial technology firm Viva Republica and the other is led by brokerage Kiwoom Securities.
According to financial authorities, the FSC plans to announce a plan later this month to grant a license for a third internet bank.
Under the plan, the FSC will receive applications in October and give a preliminary license by the end of the year.
During a meeting with reporters last Friday, FSC Chairman Choi Jong-ku said the commission notified Viva Republica and Kiwoom of why they were rejected.
“If they want to reapply, the FSC will give them sufficient time to make up for (their shortcomings),” Choi told reporters.
Two internet-only banks – K bank and Kakao Bank -- were launched in 2017, challenging traditional banks in South Korea and forcing them to cut commission fees and revamp their online and mobile banking services.
By Ram Garikipati and newswires (firstname.lastname@example.org)