The Democratic Party of Korea and other ruling-bloc parties are said to be planning to hold a forum next month to revive the push for a fourth internet-only bank. The financial authorities are cautious about introducing a fourth internet-only bank, but the National Assembly is stepping in to give momentum to the renewed effort.
According to the financial sector on the 14th, the Democratic Party of Korea and the Rebuilding Korea Party, among other ruling-bloc parties, plan to hold a forum next month on the need to establish a fourth internet-only bank.
At this forum, the financial authorities, experts, and industry figures are expected to gather to share pros and cons on establishing a fourth internet-only bank. The ruling bloc held a first forum on Apr. 6 under the theme "The halted fourth internet bank, is a renewed push necessary?" The discussion then focused on assessing the achievements and limitations of the three existing internet-only banks—Kbank(279570), KakaoBank(323410), and Toss Bank.
The second forum is expected to center on policy directions to revive the push to establish a fourth internet-only bank. The ruling bloc argues for relaunching the fourth bank, saying banks are not sufficiently supplying funds to small merchants and sole proprietors. There is also criticism that the three internet-only banks are focused on household lending and do not align with the policy goal of "eliminating financial blind spots." It says launching a fourth internet-only bank is necessary to address those blind spots.
The financial authorities are cautious about reviving the fourth internet-only bank. The Financial Services Commission last September rejected all preliminary license applications from four consortia—Soso Bank, Soho Bank, Podo Bank, and AMZ Bank. The financial authorities determined that the consortia had opaque major shareholders and lacked capital strength and business sustainability.
The financial authorities are maintaining a cautious stance on establishing a fourth internet-only bank. The presidential office is also said to have no immediate intention to relaunch the push. Both the presidential office and the financial authorities are understood to be reluctant to approve additional internet-only banks amid a sharp rise in household lending. In the financial sector, there is criticism that political discussions on establishing a fourth internet-only bank are being conducted from the standpoint of stakeholders.
A financial industry official said, "It appears the political sphere is prioritizing political gain and loss over economic logic in backing the establishment of a fourth internet-only bank."