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South Korea to ease restrictions for specialized banks, insurers and brokerages

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South Korea to ease restrictions for specialized banks, insurers and brokerages

South Korea's Financial Services Commission is planning to ease restrictions to allow more specialized banks, insurers and brokerages in the country, Maeil Business News Korea reported Feb. 6.

This includes relaxing licensing criteria and measures to enable the setting up of banks like Kakao Bank and K BANK Co. Ltd., the country's two internet-only banks. The regulator could approve customized banking operations based on duties and roles, FSC chairman Choi Jong-ku said at a conference.

The regulator will also ease licensing restrictions on the insurance and securities sectors, including plans to allow more small-sized specialized insurance companies to offer services online. The FSC also plans to lower the minimum fund requirement for online-only insurers and introduce a system for such companies to offer niche services like pet and travel insurance.

For the brokerage sector, the FSC plans to halve the minimum capital requirement to 1.5 billion won. It could also allow specialized brokerages to register for operations instead of applying for approval.

As of Feb. 6, US$1 was equivalent to 1,084.13 South Korean won.