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Internet-only bank seeks gov't approval for service

All News 14:12 September 30, 2016

SEOUL, Sept. 30 (Yonhap) -- South Korea's financial regulatory body said Friday it will soon decide whether to issue a permit for the nation's first online-only bank.

Two consortiums, one led by KT Corp. and the other by Kakao Corp., 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 (FSC) 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 Kakao Talk, is expected to submit an application in November or December.

A computer-generated image, provided by Yonhap News TV, of plans for South Korea's first online-only bank. (Yonhap)


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