As per plans, Korea Investment Holdings will own a 50% stake in the venture and Daum KaKao will own 10%.
Another unnamed technology firm is expected to own 30% of the consortium while the remaining 10% will be owned by four commercial banks including Hana Bank, as reported by the Korea Herald.
The move follows the new set of measures launched by the country’s financial regulator that were aimed at encouraging IT firms to join the Internet-only banking industry to lower entry barriers and easing regulations.
A Daum Kakao spokesperson was quoted by Korea Joongang Daily as saying: "We will work with Korea Investment & Securities and apply for (regulatory approval to set up) a web-based bank for October when the applications will be received.
"Web-based banks will bring about great changes in the financial industry. Daum Kakao, with our strength in mobile platform operations, will contribute to this innovation with optimal standards for a mobile bank."
It is being speculated that other companies such as Mirae Asset Group and Kyobo Life are also planning to form consortiums to enter the new internet banking sector.
