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Financial Services Commission. (Photo: FSC) |
[Alpha Biz= Kim Jisun] Seoul, September 17, 2025 — South Korea’s financial authorities are set to announce the preliminary approval results for the country’s fourth internet-only bank (the “4th Internet Bank”), roughly six months after receiving applications in March.
Despite efforts by some consortia to revise their shareholder structures and supplement deficiencies, industry observers expect that all four applicants may ultimately fail to secure approval.
According to regulatory sources, the Financial Services Commission (FSC) may convene a regular meeting as early as today to finalize and disclose the results. Ahead of the decision, an external evaluation committee held closed-door presentations with the applicant consortia on September 11.
Originally, results were expected by the end of June. However, extensive requests for supplementary materials, coupled with delays stemming from an unexpected political crisis and subsequent change of administration, slowed the process. The recent appointment of Lee Eok-won as FSC Chairman on September 12 also impacted the timing.
The heavy weighting on inclusiveness reflects regulatory emphasis on supporting financial access for low-income households and small businesses, including mid-rate lending. Innovativeness was assessed based on the introduction of new products and services, while stability considered capital adequacy and long-term operational soundness.
Among the contenders, the Korea SOHO Bank (KSB) consortium—comprised of four banks, multiple financial institutions (card, insurance, securities, savings banks), and LG CNS—was initially seen as a frontrunner. However, it is now expected to fall short on stability requirements. Another applicant, SoSo Bank, led by the Korea Federation of Micro Enterprises and framed around President Lee Jae-myung’s campaign pledge to establish a “specialized bank for small businesses,” has also attracted attention. Yet analysts anticipate its proposal may fail to meet the innovation threshold.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
