Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
Bidding race for 3rd internet bank to resume
The Financial Services Commission headquarters in Seoul / Yonhap
By Jhoo Dong-chan
By Jhoo Dong-chan
The government is set to resume its screening for the nation's third internet-only bank soon, financial authorities said Monday.
The Financial Services Commission (FSC) said it will receive preliminary applications once again for internet banking licenses in October and announce the results in December. The exact timetable for the regulator's screening process will be given by the end of July.
Two consortiums led by Kiwoom Securities and Viva Republica had vied for a new internet-only bank in May, but the FSC rejected both parties' proposals because Kiwoom's was not innovative enough while Viva raised concerns over governance and financing.
Under the FSC's plan, both consortia will be given two months to reinforce what they were lacking in their last bid.
The Toss consortium, led by mobile money transfer app Toss' operator Viva Republica, failed to demonstrate a solid financing capacity to establish an internet-only bank in its previous bid.
In the bid, the consortium was believed to easily get the approval from the FSC thanks to strong partners such as Shinhan Financial Group and Hyundai Marine & Fire Insurance, but the two alliances withdrew their partnership at the last minute questioning Viva's financial capacity.
Viva Republica said it joined hands with foreign venture capitals to replace its two powerful partners, but the FSC rejected Viva's plan.
“The financial regulator decided to reject the Toss consortium's bid not only because of the partners' exit but also Viva's disappointing earnings and poor cash reserves,” said an industry insider who is familiar with the issue.
Viva Republica has failed to post a profit over the past three years.
The FSC stressed Viva needs to secure trustworthy financial partners, not foreign ventures that would immediately liquidate their investment once realizing a marginal profit, if it wants to win the approval this time.
For the Kiwoom consortium, the agency said in its last bid that its proposal wasn't economically viable or innovative enough.
The FSC advised it to come up with a more detailed plan for an internet-only bank this time.
“We thoroughly informed the two consortia why their proposals were rejected in March,” FSC Chairman Choi Jong-ku said during a press conference Friday. “Of course, they can participate in the bid once again if they believe they are ready. We will also provide enough time for it.”
According to sources and media reports, other companies such as retail giant BGF and e-commerce firm WeMakePrice are considering plans to join the bid for internet banking licenses this time.
The FSC added it will give the approvals to multiple parties if they are qualified.