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By Jhoo Dong-chan
Commercial banks and IT firms are gearing up to establish internet-only banks after the government hinted it would ease regulations allowing companies to acquire a larger stake in cyber banks.
Last week President Moon Jae-in said the controversial regulation limiting nonfinancial firms from owning larger shares in banks should be revised, and the move is encouraging not only commercial lenders, but also IT firms and brokerages to tap into the sector.
Of commercial banks, NH NongHyup, KEB Hana and Shinhan Bank said they are strongly considering the possibility of establishing internet-only banks, according to sources.
They did not participate in the move when Kakao and K-Bank won preliminary licenses to launch the nation's first internet-only banks in 2015, but now say the situation has changed.
Of them, NH NongHyup Bank is the most active player.
"I understand the matter is in the reviewing phase, but the possibility is there," said a NH NongHyup Bank official.
"NH Investment & Securities, the bank's brokerage affiliate, participated in the sector to launch an internet-only bank on behalf of NH Financial Group in 2015. I believe we could find our role in the internet bank sector as an existing player."
NH Investment & Securities has a 10 percent share in K bank.
KEB Hana and Shinhan Bank said they haven't decided whether to join the trend but are positively reviewing their plans.
"Related regulations will be shifted. We now need to see the matter accordingly," a Shinhan Financial Group official told Yonhap.
The commercial banks have changed their conservative stances as the government and ruling party hinted they will ease related laws to increase the stake that nonfinancial companies are permitted to hold in internet banks from the current 4 percent to as much as 50 percent.
Interpark, which led but failed to establish a consortium with SK Telecom and NHN Entertainment to launch an internet-only bank in 2015, said it will try once again.
"If related regulations are eased, we are willing to invest more money in establishing an internet-only bank this time," an Interpark official said.
Kiwoom Securities, which is considered to be an industrial corporation because its largest shareholder is IT firm Daou Technology with a 47.7 percent stake, also failed to launch the bank in 2015, but is still interested in establishing an internet-only bank with its controlling shareholder firm.
The nation's largest portal service provider Naver said it is "unlikely" to join the competition, though, while mobile carrier SK Telecom is taking a wait-and-see stance.
