Applications for Internet-only banks begin

Financial authorities will start accepting preliminary applications for Internet-only banks, a new banking business platform, Wednesday, the Financial Services Commission said Tuesday.

The submission runs for two days, from 9 a.m. on Wednesday through 6 p.m. on Thursday. The financial regulators are planning to give preliminary approval to one or two bidders by December.

Internet-only banks offer the usual savings, wiring and loan services online, without conventional brick-and-mortar branches.

Four consortiums of banks, brokerages and tech firms are known to be competing in the bid. The Kakao Bank Consortium comprises Kakao Corp., Korea Investment Holdings Co. and KB Kookmin Bank.

The Interpark Bank Grand Consortium involves 10 companies, including Interpark, SK Telecom, Industrial Bank of Korea, NH Investment and Securities, GS Home shopping, NHN Entertainment and Hyundai Marine & Fire Insurance Co.

The KT Consortium engages 12 participants, including mobile carrier KT, Woori Bank, Hyundai Securities Co., Hanwha Life Insurance, KG Inicis, Danal, POSCO ICT and Ezwelfare Co.

The 500V Consortium, a consortium of small and medium-sized ventures, has not revealed the list of members.

The authorities will look into five major qualifications, including innovation in business proposals, stability of shareholding structures and business models, contribution to the enhancement of financial customers’ convenience, contribution to the development and competitiveness of Korea’s financial industry and growth potentials for global expansion.

(joowonc@heraldcorp.com)