Three consortiums bid for Internet banking licenses

Three consortiums have submitted applications for Internet bank licenses, Korea’s top financial regulator said. The deadline for application was on Thursday.

Consortiums led by Kakao, KT and Interpark have turned in applications for the web-based banks, according to the Financial Services Commission. The FSC plans to review the applications during October, have the candidates reviewed by an external committee from November to December and make decisions on preliminary approval in December.

The external review committee will consist of seven experts from the areas of finance, information technology, fintech, law, accounting, risk management and consumers.

Criteria for the review will include the size of the funding (10 percent), composition of shareholders and major shareholders (10 percent), business plans (70 percent), manpower and facilities (10 percent).

Within the business plan criteria, the degree of business innovation (25 percent), contributions to boosting convenience of financial consumers (10 percent), stability of business model (5 percent) are factors that will be considered, according to the FSC.

Up to two consortiums are expected to be picked.