Line, Mizuho invest more in planned online bank

Line Financial and Mizuho Bank injected an additional 12 billion Japanese yen ($112 million) into their planned internet bank, Line Bank, the companies announced Monday.

Line Financial is a financial subsidiary of Line, Naver's Tokyo-based messaging app subsidiary.

Line Financial has been preparing to launch Line Bank, which will focus on mobile banking service, with the Mizuho Bank. In May 2019, the two companies formed Line Bank Preparatory Company to prepare for its launch.

The 12 billion yen investment was made in that company. This increases the corporation's capital to 16.5 billion yen.

The two partners plan to launch Line Bank in 2022, subject to approval by relevant authorities.

The online bank, according to Line, will be integrated with the Line messaging app and offer a user-friendly banking experience suitable for the so-called digital generation.

The bank hopes to reach a good number of the 86 million users of the Line messaging app in Japan.

Mizuho Bank will contribute its banking know-how.

To strengthen the partnership, the two companies also announced changes to the management structure of Line Bank Preparatory Company.

While the company is currently headed by Tetsuhiko Saito, CEO of Line Financial, in the future it will have co-CEOs. The second CEO will be appointed by Mizuho Bank.

As for board members, four directors and auditors will now be appointed by Line Financial and four others by the Mizuho Bank.

Line has already started overseas banking services. Last year, it established Line BK in Thailand. It plans to launch banking services in Taiwan and Indonesia this year.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]