By Kim Jae-won
The financial regulator said Tuesday it will open the door for non-financial companies to launch Internet-based banks, paving the way for conglomerates and portal sites such as Samsung and Naver to advance into the business.
The Financial Services Commission (FSC) said that ownership of Internet banks is one of the key subjects its task force plans to discuss. Previously, the government banned non-financial companies from owning more than a 4-percent stake in a commercial bank by law.
"Ownership of Internet banks is one of the key issues we plan to discuss. Our task force will consider applying new regulations on Internet banks," Jeon Yo-seop, a director of the FSC, said in a press conference.
However, Jeon said that details on ownership of Internet banks will be released later, after a hearing on the issue is held in April. The FSC plans to announce a blueprint for a Korean Internet bank model in June, and submit a related bill to the National Assembly in the third quarter of this year.
Analysts said that with the change in regulations, the nation's big conglomerates, such as Samsung, Hyundai Motor and LG, could launch their own Internet banks. Korea's major portal site operators, including Naver and Daum Kakao, may also advance into the market using their platforms.
"We have been blocked from advancing into the finance industry due to regulation. We may consider joining the business only after the government changes the rules," said Lee Seung-jin, a spokesman of Naver, the nation's largest portal site operator.
To make online transactions easier, the financial authorities said they will not force financial companies to use a "certified identification system" anymore. Financial companies will be allowed to use their own identification systems, using customers' fingerprints or irises.
The government also decided to pave the way for crowd funding, which helps startup businesses collect funds easily through the Internet. Crowd funding is the practice of financing a project or venture by raising monetary contributions from a large number of people, typically via the Internet.
The financial regulator said Tuesday it will open the door for non-financial companies to launch Internet-based banks, paving the way for conglomerates and portal sites such as Samsung and Naver to advance into the business.
The Financial Services Commission (FSC) said that ownership of Internet banks is one of the key subjects its task force plans to discuss. Previously, the government banned non-financial companies from owning more than a 4-percent stake in a commercial bank by law.
"Ownership of Internet banks is one of the key issues we plan to discuss. Our task force will consider applying new regulations on Internet banks," Jeon Yo-seop, a director of the FSC, said in a press conference.
However, Jeon said that details on ownership of Internet banks will be released later, after a hearing on the issue is held in April. The FSC plans to announce a blueprint for a Korean Internet bank model in June, and submit a related bill to the National Assembly in the third quarter of this year.
Analysts said that with the change in regulations, the nation's big conglomerates, such as Samsung, Hyundai Motor and LG, could launch their own Internet banks. Korea's major portal site operators, including Naver and Daum Kakao, may also advance into the market using their platforms.
"We have been blocked from advancing into the finance industry due to regulation. We may consider joining the business only after the government changes the rules," said Lee Seung-jin, a spokesman of Naver, the nation's largest portal site operator.
To make online transactions easier, the financial authorities said they will not force financial companies to use a "certified identification system" anymore. Financial companies will be allowed to use their own identification systems, using customers' fingerprints or irises.
The government also decided to pave the way for crowd funding, which helps startup businesses collect funds easily through the Internet. Crowd funding is the practice of financing a project or venture by raising monetary contributions from a large number of people, typically via the Internet.
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