The Korea SOHO Bank consortium, which applied for preliminary approval for the 4th Internet-only bank, announced that it plans to start its business with initial capital of 300 billion won. The consortium also predicted that it would be possible to turn a profit in the 4th year after the launch.
The consortium held a press conference on the morning of the same day at the Seoul Banking Hall in Jung-gu and announced its SOHO bank business plan. The consortium was formed with the goal of establishing an Internet bank that provides customized financial services for small business owners. Korea Credit Data (KDC) leads the consortium, which also includes three major banks: Hana Bank, Woori Bank, and NH Nonghyup Bank. In addition, a total of 15 corporations, including BNK Busan Bank and OK Savings Bank, have joined the consortium.
Kim Tae-hyun, Deputy Minister of the KCD SOHO Bank Task Force (TF), stated during the meeting, "We will start with initial capital of 300 billion won" and noted, "We will establish a capital increase plan according to the overall deposit and loan goals." According to the consortium, participating companies in the consortium agreed to increase capital up to 1.5 trillion won, five times the initial capital, after the launch.
Park Joo-hee, a director of the KCD SOHO Bank TF, said, "We internally anticipate that profitability will be achievable around the 4th year after the launch." He added, "The SOHO bank will not just focus on the interest margin," stating that it will expand non-interest income and reduce bad debt costs using advanced credit evaluation models.
At the meeting, there was also an opportunity to explain the service plans of the SOHO bank. Kim Dong-ho, CEO of KCD, emphasized, "The goal of the SOHO bank is to help small business owners succeed in their challenges.") He continued, "While existing Internet banks have introduced new products in the deposit area, the SOHO bank will differentiate itself in the loan sector." Kim added, "Current credit evaluations for small business owners are based on personal credit scores," stating that they will implement credit evaluations centered on the business capabilities of small business owners to provide customized financial solutions.
The consortium announced that it plans to provide four types of services after the launch: ▲ supply chain finance ▲ funding instead of loans ▲ policy finance supported by artificial intelligence (AI) ▲ banking services instead of banks.
Meanwhile, the consortium expressed a cautious stance regarding the initial public offering (IPO) of the SOHO bank. In response to a question about whether there are plans for an IPO, Kim stated, "It is still early to talk about an IPO," but added, "If the SOHO bank requires large-scale funding, we will consider it."