KakaoBank to sell funds by end of year

KakaoBank logo / Courtesy of KakaoBank

By Anna J. Park

Kakaobank plans to start selling mutual funds through its mobile platforms before the end of the year, as it has become the country's first internet-only bank to obtain a financial investment license.

According to the bank, Friday, the Financial Services Commission (FSC) approved KakaoBank's financial investment business license during its 14th regular meeting held earlier this week. The banking subsidiary of the Kakao conglomerate had applied for investment trading and investment brokerage licenses in May.

With the FSC's decision, KakaoBank has become the only digital bank licensed to offer investment brokerage services, ahead of its competitors K bank and Toss Bank. The bank forecasts that it could begin selling mutual fund products on its mobile platform later this year at the earliest, or by early next year.

The internet-only bank expects the new business expansion will contribute to its non-interest profits, diversifying the sources of its profit structures.

“Having earned the investment brokerage licensing, KakaoBank will prepare services for customers who are not familiar with investing to have an easy and convenient fund investment experiences,” an official from KakaoBank told The Korea Times, Friday. “In addition to providing customers increased convenience, the bank is expected to secure more non-interest income through the service.”