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Report: Shinhan Financial backs out from Internet bank consortium

South Korea's Shinhan Financial Group Co. Ltd. has withdrawn its participation in a digital-only bank consortium led by Viva Republica Co Ltd., operator of the Toss mobile peer-to-peer payment platform, The Chosun Ilbo reported.

Shinhan Financial dropped its proposal to become the second-largest shareholder of the would-be Internet bank at the request of Viva Republica, over disagreements relating to how the digital lender would be run, the report said.

The Financial Services Commission will start accepting applications for a third Internet bank license from March 26.

Another consortium, comprising Kiwoom Securities Co. Ltd., Hana Financial Group Inc. and SK Telecom Co. Ltd., is also expected to apply for a license.