Toss Bank Applies to Financial Services Commission for Internet-Only Bank License

Toss logo displayed on a smartphone (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] The Financial Services Commission announced on the 5th that it has received the application for the official license of the internet-only bank from Toss Innovation Preparation Corporation (Toss Bank).

The registered corporate name is "Korea Toss Bank Co., Ltd.," with a capital of 250 billion KRW.

Shareholders include 11 companies such as Viva Republica, Hana Bank, Hanwha Investment & Securities, E-Land World, Korea Federation of SMEs, Standard Chartered Bank Korea, and Welcome Savings Bank.

Since the preliminary approval by the Financial Services Commission on December 16, 2019, Toss Bank has prepared for the establishment of the internet-only bank by setting up the preparation corporation, raising capital, hiring executives and employees, and building the IT system.

The Financial Services Commission plans to decide on the official license of Toss Bank after review by the Financial Supervisory Service in accordance with relevant laws and regulations.

The Financial Supervisory Service will examine whether the legal licensing requirements are met, including capital and funding plans, major shareholders and shareholder composition plans, business plans, executives, personnel, business facilities, IT systems, and physical infrastructure.

If Toss Bank receives the official license, the number of internet-only banks will increase to three, including Kakao Bank and K Bank.