KT, Kakao, Interpark consortiums apply for Internet-only bank license

By Kim Jae-won

Three consortiums led by KT, Kakao and Interpark said Thursday that they have applied for a license from the financial regulator to run Internet-only banks.

KT said its consortium includes investors POSCO ICT, Woori Bank and GS Retail, and has the motto 3C, meaning connected, convenient and customized services.

Kakao said its Kakao Bank consortium consists of 11 investors, including Korea Investment & Finance, KB Kookmin Bank, Korea Post and eBay. Interpark also announced that 15 investors joined its I-Bank consortium, which includes SK Telecom, the Industrial Bank of Korea and NHN Entertainment.

The 500V consortium, led by a venture firms’ association, withdrew its plan to join the competition, saying it will bid in the second round scheduled for June next year.

“Kakao Bank dreams of innovative financial services, connecting, expanding and sharing customers’ needs,” said Kakao in a statement.

The KT and Interpart consortiums also vowed to provide better banking services based on their technological prowess. I-Bank said it had opened the door for IT companies to join the business.

The Financial Services Commission (FSC) said it will give a preliminary license to run an Internet-only bank in December to one or two bidders after evaluating them based on their business plan, capital, shareholders and infrastructure. The final license will be given next year.

The FSC has pushed for introducing the new type of bank for the first time here, saying it will transform banking business practices. The Internet-only banks will offer almost all the services that general banks provide from deposits and lending to foreign exchange through Web and mobile platforms.

The Internet-only bank has been regarded as a key part of the so-called fintech, a term describing the combination of finance and technology. The government has sought to improve the nation’s finance industry with fintech by making its services more convenient and accessible to customers.

Stock investors showed a mixed response to the prospects of the business. Shares of Kakao rose 1.19 percent to 127,400 won, retaking the No. 1 spot by market capitalization on the minor KOSDAQ bourse. Yes24, an online bookstore which joined the Kakao consortium, saw its shares rise 4.62 percent to 12,450 won; while Interpark saw its shares drop 0.45 percent to 22,200 won.

Shares of KT on the main KOSPI also slipped 0.81 percent to 30,450 won.