Recently, unsettling rumors have circulated in the financial sector regarding the selection of the fourth internet-only bank (4th Internet Bank). Amid concerns that the Lee Jae-myung administration's momentum for selecting the 4th Internet Bank might be waning, consortiums that applied for preliminary approval are on edge.
While there is no confirmed information, there are rumors linking Company A, which was pushing for entry into the 4th Internet Bank, with powerful figures in the Yoon Suk-yeol administration. It is said that this influential figure facilitated the formation of the consortium between Company A and Financial Firm B. Recently, there are signs that the management rights of Company A might change, adding weight to these rumors.
Rumors are also circulating about involvement of a powerful figure not officially associated with the Yoon Suk-yeol administration in other consortiums. It is rumored that this influential figure was involved in the consortium's formation and also made an investment.
The consortium in question maintains that all these rumors are unfounded. One official noted, "If powerful figures from the previous administration had been involved, there wouldn’t have been a consortium that abandoned the project halfway. The selection process would have also progressed swiftly," adding that "the 4th Internet Bank is a policy that was promoted under the previous administration, so it seems strange that such rumors are circulating." As the preliminary review for the 4th Internet Bank has dragged on, rumors of unclear origin are surfacing.
The concern is that these rumors may jeopardize the already sluggish selection of the 4th Internet Bank. In March, four consortiums, including Korea SOHO Bank, Soso Bank, Podo Bank, and AMZ Bank, applied for preliminary approval for internet-only banks. Initially, results were expected by June, but the financial authorities' review is still ongoing.
Financial authorities have cited document completion as the reason for the delay in the review. However, the consortiums believe that the issue may not be related to the documents. With the Lee Jae-myung administration pushing for the dismantling of the Financial Services Commission and restructuring the financial oversight system, it creates a challenging atmosphere for the financial authorities to proceed with the preliminary approval for the 4th Internet Bank. Additionally, there are voices in the ruling party advocating for the establishment of a bank specialized for small business owners, leading to expected policy changes and further delays in the preliminary review for the 4th Internet Bank.
For corporations that have invested considerable time and effort to enter the banking sector, the confluence of malicious rumors, changes in administration, and shifts in policy presents a challenging situation. The financial sector hopes that consistency will be maintained for policies that will bring innovation to the banking industry, like the 4th Internet Bank, even after a change in administration.
An industry official mentioned, "There will be a closed presentation at the Financial Supervisory Service next week, so we will have to keep an eye on the progress."