Financial Services Commission Grants Final Approval to Toss Bank Internet-Only Bank... Operations to Start as Early as September (Update)

Obtained Main Approval After About 4 Months of Application

[Asia Economy Reporter Kim Jin-ho] Viva Republica, the operator of the financial platform Toss (hereinafter Toss), has received approval from financial authorities to operate as an internet-only bank. Toss Bank, the third internet bank following K-Bank and Kakao Bank, is expected to launch as early as September.

The Financial Services Commission announced on the 9th that it approved the "Toss Bank banking business final approval agenda" at its regular meeting.

Toss Bank applied for the final approval in February last year. After thorough inspections including on-site investigations by the Financial Supervisory Service, it met all six requirements: capital, funding plans, shareholder composition, business plans, executives and employees, and facilities including personnel, business premises, and IT systems.

The Financial Services Commission imposed the sincere implementation of the capital increase plan as a condition to ensure Toss Bank’s smooth growth. Toss Bank must carry out the capital increase plan by 2025, the expected breakeven point.

Chairman Eun Sung-soo stated, "The emergence of a new internet bank is expected to greatly contribute to expanding consumer choice and accelerating competition and innovation in the financial industry," and urged, "Please thoroughly prepare the financial security system without any gaps and ensure consumer protection before starting operations."

He added, "Utilize the data accumulated through the Toss platform and fintech technology to actively engage in inclusive finance, including loans for medium- and low-credit borrowers."

Toss Bank plans to officially start operations as early as September after conducting actual transaction tests and linking with other institutions such as the Korea Financial Telecommunications & Clearings Institute’s payment network. According to banking regulations, operations must begin within six months after final approval.

A Financial Services Commission official said, "We plan to temporarily operate an on-site support team for internet banks to help stabilize the management of the newly established internet-only bank as early as possible."

Meanwhile, Toss Bank is the third internet bank to launch in South Korea. Viva Republica is the largest shareholder with a 34% stake. Major shareholders include Hana Bank, Hanwha Investment & Securities, the Korea Federation of SMEs, and E-Land World. Currently, the bank has about 140 employees, and this number is expected to grow to around 180 by the September launch.

Key services include credit loans for medium- and low-credit borrowers (based on big data), small business loans, check cards, simple remittances, and easy overseas remittances.

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