The Four Major Financial Holding Companies "Will Establish Internet Banks If Approved by Financial Authorities"

[Asia Economy Reporter Oh Hyung-gil] Major domestic financial holding companies have confirmed that they are willing to establish internet-only banks as long as the financial authorities confirm their policy to allow additional internet banks.

On the 11th, Yonhap News Agency surveyed KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Financial Holdings about their intentions to establish internet banks. Except for NH Nonghyup Financial Holdings, the other four responded that "if the authorities grant approval, we will positively consider establishing internet banks."

A representative from Financial Holding Company A stated, "If additional internet bank licenses are granted to existing financial holding companies, there is no reason to refuse," adding, "We have conveyed the same position to the Korea Federation of Banks."

The Korea Federation of Banks has been discussing the necessity of establishing internet banks with financial holding companies from the end of last year until recently. It plans to deliver the collected opinions and the results of the internet bank demand survey from major financial holding companies to the Financial Services Commission's working-level officials as early as this month.

The demand survey was conducted mainly among banking sector financial holding companies out of 10 financial holding companies, and although the level of enthusiasm varied, a considerable number of holding companies reportedly expressed their intention to establish internet banks.

However, among the five major financial holding companies, NH Nonghyup Financial Holdings was the only one to express a "reserved" stance.

A representative from NH Nonghyup Financial Holdings said, "There are currently no plans to establish an internet bank, and we have submitted to the Korea Federation of Banks that we will respond to digitalization by upgrading All One Bank (NH Nonghyup Bank's internet banking app)."