SOHO Bank: "Despite Failing to Win Fourth Internet-Only Bank License, Commitment to Small Business Bank Remains Unchanged"

Yonhap News Agency

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The Korea SOHO Bank consortium, which had been considered the most likely candidate for the fourth internet-only bank, stated that it accepts the result of the preliminary approval for the fourth internet-only bank, but reaffirmed its commitment to establishing a bank specializing in small business owners.

On September 17, the Financial Services Commission announced that it had denied preliminary approval to all four applicants, including SOHO Bank, Soso Bank, Podo Bank, and AMZ Bank.

SOHO Bank said in a statement released that day, "We humbly accept the results of the review and will address the shortcomings raised during the evaluation process as we move forward once again toward the goal of establishing a bank dedicated to small business owners."

The Financial Services Commission explained, "The external evaluation committee assessed the applicants and determined that they were not suitable for preliminary approval to operate a bank," adding, "The Financial Supervisory Service submitted the review results to the Financial Services Commission, recommending denial of preliminary approval based on these opinions."

SOHO Bank, considered the strongest candidate, received positive evaluations for its efforts to expand financial opportunities for small business owners and its innovation in integrating finance with technology companies. However, it was found lacking in terms of the capital strength of its major shareholders, as well as the sustainability and stability of its operations.

Soso Bank was also positively evaluated for its plan to expand financial opportunities for small business owners, but was criticized for the lack of transparency regarding its major shareholders, insufficient capital strength, and limited potential for additional capital investment.

Podo Bank and AMZ Bank similarly faced criticism for the lack of transparency of their major shareholders and insufficient capital strength.

Kim Dongho, CEO of Korea Credit Data, immediately issued a statement saying, "Although the first bank for small business owners was not realized this time, I am confident that it is an inevitable future that will soon be achieved," adding, "If, as promised by the President, an internet-only bank for financially vulnerable groups and small business owners is established, it will undoubtedly be the Korea SOHO Bank consortium."

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