Seoul Reviews Allowing Non-Banks to Enter Banking, Yonhap Says

South Korean financial authorities are reviewing measures to allow insurers, brokerages and other non-bank financial players to enter the banking business, Yonhap News reported Sunday, citing people it didn’t name.

(Bloomberg) — South Korean financial authorities are reviewing measures to allow insurers, brokerages and other non-bank financial players to enter the banking business, Yonhap News reported Sunday, citing people it didn’t name. 

“South Korea needs more competition in the banking business, but it takes time for a new player to compete with big banks,” Yonhap News said, citing an unnamed financial official. 

“Large financial institutions in other financial businesses can join as a viable competitor,” the person told Yonhap, adding that large brokerages, insurers and savings banks could compete with banks in areas such as payment settlements, loans and foreign exchange-related operations. 

The report comes after South Korean President Yoon Suk Yeol earlier this month criticized banks for having a “money feast” — booking profits and giving executives big bonuses while borrowers struggled to pay high interest rates. By the end of June, the country’s financial regulator, the Financial Services Commission, plans to come up with ways to boost competition in the banking sector and revamp bankers’ bonuses. 

Read: ‘Money Feast’ Censure Spurs Korea Review of Bankers’ Bonuses

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