Messaging app firm Kakao and telco KT win Korean Internet bank bids

Messaging app firm Kakao and telco KT win Korean Internet bank bids

Kakao, the operator of South Korea's largest mobile messaging app, and telco KT Corp., have won approval from the Government to open the country's first Internet-only banks.

The winning bids were part of a three-way contest to stake a claim for the two banking licenses that were up for grabs from the country's Financial Services Commission, beating off competition from a consortium led by online retailer Interpark.

Kakao already has form in financial services. In November, the company teamed up with 16 banks to launch a mobile wallet service for online, offline and person-to-person payments. The firm partnered with Koookmin Bank, Chinese e-commerce outfit Tencent and online flea market eBay in its Internet bank bid.

KT's bid also mustered support from another Chinese e-commerce giant in Alibaba's Alipay, alongside Woori Bank, GS Retail, Hanwha Life Insurance and Danal Co..

The arrival of new Web banks in South Korea will "inject healthy competition in the local financial market and improve the financial industry,” Yim Jong Yong, chairman of FSC, said in a statement announcing the approval.

Comments: (1)

John BaRoss
John BaRoss - FINCCLUDE Incorporated - Long Valley 01 February, 2016, 16:32Be the first to give this comment the thumbs up 0 likes

So who is noticing an emerging trend with Carriers/Operators/MSOs/Telco's and Banking?  (i.e.: Besides this telco 'Internet Bank' is SK; in 3Q15 the Rerserve Bank of India licensed 5 telcos to become 'Payments Banks'; in 4Q15 the Reserve Bank of Nigeria announced moving forward with licensing 3 telcos to operate banking services as 'Super Agents'; while in 1Q16 Orange announced a bank acquisition and plans to launch banking services in France in 2017, elsewhere in Europe soon afterwards. noticed this trend in Carrier Commerce ... one Carrier Commerce sector of approximately a dozen quietly emerging sectors of Carrier Commerce globally (i.e.: Carrier Mobile Money, Direct Carrier Billing, Carrier Mobile Wallets, Carrier eMoney, Carrier Transit Commerce, Carrier Financial Services, Carrier Healthcare Commerce, Carrier Education Commerce, Carrier Crowd Funding and more).