Counsel in Korea are concerned about the potential
downgrading of the country’s first internet-only
banks, whose tier designation is subject to the outcome of
proposed amendments to the Banking Act.
The Financial Services Commission (FSC) announced its plan
to introduce internet-only banks to be operated by the
country’s internet giant Kakao and telecom
operator KT Corporation in June.
According to the plan, an internet-only bank’s
minimum required capital is 50 billion won ($45 million), half
of that of a general commercial bank.
But lawyers in the country point to the political wrangling
over the amendment and the possible designation of
internet-only banks as second-tier savings banks if it gets
voted down by Korea’s opposition party.
"If the bill...