Korea Kakao now subsidiary of Korean investment firmThe Financial Services Commission approved Korea Investment Holdings’ request on Wednesday to make Korea Kakao, a unit in charge of preparing a web-based bank, a subsidiary of the investment company.
The move further clears the way to operate an Internet-only bank. Korea Investment Holdings, a member of the Kakao-led consortium for the bank, holds a 54 percent stake in Korea Kakao. Under current financial law, a holding company is allowed to have a limited amount of shares in financial businesses. But if Korea Kakao becomes a subsidiary of Korea Investment Holdings, legal hurdles are cleared.
Kakao Bank gained preliminary approval last year and expects to launch its service later this year.
More in Finance
Color of Chuseok
Kospi tumbles to 7-week low as economic prospects dim
BC Card opens big data lab in Busan
Bank of Korea expands support for small businesses
Kakao Bank to start preparing to go public