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.