"KT Privileges vs ICT Convergence" Will the Guenmo Ship's Task Be Solved?

KT's Long-Awaited Wish, 'K Bank Normalization' Fate to Be Decided Today
Repeatedly Frustrated at the Judiciary Committee Threshold... 'KT Special Case' Controversy
All ICT Companies May Face Issues Due to Fair Trade Commission Law Violations
Industry: "Major Shareholder Eligibility Should Reflect ICT Reality"

[Asia Economy Reporter Koo Chae-eun] The fate of the 'normalization of K-Bank,' one of the tasks of KT under the leadership of Koo Hyun-mo, will be decided today in the National Assembly. Depending on whether the Internet Bank Special Act (Inbank Act), which has repeatedly failed to pass the Legislation and Judiciary Committee due to the 'KT preferential treatment controversy,' is approved, KT's pursuit of new business ventures outside the telecommunications sector is expected to be determined.

'KT's Long-cherished Wish' Inbank Act Faces Final Hurdle Today

On the 4th, the National Assembly's Legislation and Judiciary Committee will hold a plenary session in the afternoon to decide whether to pass the Inbank Act. The core of this amendment is to remove the Fair Trade Commission violation clause, which is KT's 'Achilles' heel,' from the major shareholder eligibility requirements. Assemblyman Chae I-bae of the Minsheng Party, a member of the Legislation and Judiciary Committee, has repeatedly blocked the bill's passage, arguing that this law is a 'KT Special Act' solely for KT.

However, due to the economic revitalization efforts such as supplementary budgets amid the COVID-19 aftermath, there is cautious speculation that the Inbank Act may pass in this committee session. Since this is effectively the last National Assembly session before the general election, the focus is on easing regulations and revitalizing people's livelihoods. A National Assembly official said, "Today's key issue in the Legislation and Judiciary Committee is the 'Tada Ban Act (Amendment to the Passenger Transport Service Act),' so the Inbank Act may receive less attention," adding, "We need to see how clear the opposition's logic or justification is."

Not only KT but also the ICT industry is closely watching the outcome. ICT companies such as Naver, Nexon, Interpark, and Wemakeprice, which are known to have been blocked from entering the internet banking sector due to regulations, have records of Fair Trade Commission violations. KakaoBank is in the same situation. If the Inbank Act does not pass, they will be subject to Fair Trade Commission reviews every six months, exposing the risk of unstable major shareholder status despite having 10 million subscribers.

Need to Open a Path in Line with the Special Act's Nature... ICT Industry on Alert

The industry holds the view that since the Inbank Act is a 'special act (特例法),' the major shareholder eligibility requirements should be relaxed to fit the reality of ICT companies. An industry insider said, "Most ICT companies realistically have records of Fair Trade Commission violations, so applying the banking law standards as they are was problematic from the start," adding, "As long as this part remains a toxic clause, it will be difficult to achieve the purpose of creating new industries by merging ICT and banking."

If the Inbank Act passes, KT is expected to actively enter the financial ICT sector, a non-telecommunications new industry. For now, KT plans to focus all efforts on increasing its stake in K-Bank, where it is the second-largest shareholder (currently 10%), to 34% to resolve K-Bank's funding difficulties. K-Bank has suspended most loan product sales since April last year.

Once the Inbank Act passes the National Assembly, the Financial Services Commission's major shareholder eligibility review will resume, allowing KT to become the largest shareholder of K-Bank. The planned 590 billion KRW paid-in capital increase, which K-Bank had been pursuing based on KT's share expansion, can proceed as scheduled, enabling business normalization. Additionally, KT is expected to launch various big data AI services combined with finance, coinciding with the passage of the Data 3 Act. A KT official explained, "Many new industries related to K-Bank that had been on hold can see the light once the bill passes."

This content was produced with the assistance of AI translation services.