( LEAD ) Regulator approves another Internet - only bank in S . Korea ( ATTN : ADDS remarks , details in last 4 paras ) SEOUL , April 5 ( Yonhap ) -- South Korea ' s financial regulator on Wednesday granted a final approval to Kakao Bank , paving the way for the nation ' s second Internet - only bank to launch operations in the first half of this year . The approval by the Financial Services Commission ( FSC ) came as its rival K - Bank , the first Internet - only bank , which started operations earlier this week , appears to have succeeded in attracting customers . The launch of Internet banks is aimed at reinvigorating the nation ' s financial sector , which is grappling with slower growth and low margins , FSC officials said . Yim Jong - yong , chairman of the FSC , said in a statement that a " fierce competition " among traditional and Internet banks would take shape in the second half of this year . Yim asked Kakao Bank to offer " creative and innovative " financial services , based on its dominant chat app , KakaoTalk . With a paid - in capitalization of 300 billion won ( US $ 266 . 7 million ) , Korea Investment Holdings Co . holds a 58 percent stake in Kakao Bank . Kakao , Kookmin Bank , Korea Post , Netmarble and Tencent Holdings Ltd . of China are among the shareholders of Kakao Bank . In just two days since launching operations Tuesday , K - Bank , formed by a consortium of KT Corp . , Woori Bank and 19 other companies , has attracted more than 60 , 000 accounts . The pace of growth in K - Bank ' s customer base appears to be faster than expected . The average monthly number of new Internet banking accounts by the nation ' s 16 commercial banks stands at about 12 , 000 . Kakao Bank officials said it will take about seven minutes for a customer to open an account . Along with deposit and loan services , Kakao Bank plans to launch a credit card business , bank officials said . Kakao Bank will also offer investment advice and recommendations about banking products to its account holders through KakaoTalk . Kakao Bank " has been preparing for financial products and services that provide bigger benefits to customers with more convenient transaction procedures , " the bank said in a separate statement . ( END )