Kakao Bank , the mobile bank of Kakao Corp . , won its final regulatory approval Wednesday . The Financial Services Commission held a meeting Wednesday and gave the green light to Kakao Bank to operate as an internet bank that provides banking and financial services without any physical branch network . With the final regulatory hurdle cleared , the bank will begin its services as early as June after final checks and preparation , the company said .   Lee Yong - woo ( center ) and Yun Ho - young ( right ) , co - CEOs of KakaoBank of Korea , pose with Kim Hak - soo , director general of the banking and insurance bureau of the Financial Services Commission on Wednesday after receiving a banking license . ( FSC ) “ At the beginning we will provide basic banking services such as deposits , loans and check cards but we will expand our services to other areas like credit cards and innovative services , ” Yun Ho - young , co - CEO of Kakao Bank told reporters on Wednesday . Kakao Bank is the second internet - based bank in South Korea . On Monday , K bank , the first such bank backed by a consortium of KT Corp . , Woori Bank and 19 other companies , was officially launched . At the launch event Monday , K bank CEO Shim Sung - hoon said K bank and Kakao Bank will not be competitors but market pioneers , each separately looking for a niche market in finance . But the two banks are likely to compete with each other through different strategies . Both banks vow to offer higher interest rates for depositors and lower interest rates for marginalized borrowers based on new credit analysis through big data . They will offer interest in the form of digital credit and gifts . “ What differentiates kakaobank from K bank is that we have overseas remittance services , ” Yun said . “ We aim to offer low fees for overseas remittance services -- as low as one - tenth of what traditional banks offer . ” Kakao Bank said the bank will be mobile - only while K bank operates both on the internet and mobile devices . Kakao Bank will utilize its parent company ’ s strong presence in mobile chat app KakaoTalk which has dominant status here with 420 million users . Yun said instead of integrating into the messenger app , which is operated by a separate unit , the bank will link services in order to use the network of the country ’ s No . 1 mobile chat app . The users of the mobile bank will be able to transfer money and get loans via KakaoTalk , the bank said . The mobile bank with a paid - in capitalization of 300 billion won ( $ 269 . 8 million ) , aims to turn profit in three years , the bank ’ s co - CEO Lee Yong - woo said . Korea Investment Holdings Co . holds a 58 percent stake in Kakao Bank . Kookmin Bank and Kakao each hold 10 percent . Other shareholders include Korea Post , Netmarble and Tencent Holdings of China . Meanwhile , K bank said it will cooperate with 3 , 000 offline KT stores and 10 , 000 GS convenience stores to attract elderly people who are not familiar with mobile devices .   By Park Ga - young   ( gypark @ heraldcorp . com ) [ 네이버 에서 코리아 헤럴드 구독 ] ▶ KH Podcast    ▶ KH Video <ⓒ KoreaHerald ( www . koreaherald . com ) 무단 전재 및 재 배포 금지 >