Name
Global FinTech Guide
Country _ Name
Korea, Republic of
SectionTitle
Online banking services
Body
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).

API-Banking:

API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.

Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.

BaaS – Bank as a Service/BaaP – Bank as a Platform:
 
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.

Introduction

Attitude of the country towards online-banking services

In addition to internet banking and mobile banking, contactless services, such as opening bank accounts without visiting the bank in-person, are increasing. Further, open banking systems are recently being implemented, which enable users to look up multiple bank accounts and make payments and transfers using a single application. It is expected that open banking systems will enable FinTech companies to actively enter the financial market, and banks would be able to provide a variety of services, including asset management services for customers and selling financial instruments.

In addition, the operation of online-only banks is accelerating the digital transformation of banking services, and in 2021, Toss Bank was authorized as the country's third online-only bank. As of March 2025, four applicants have submitted preliminary license applications for authorization as the fourth online-only bank in Korea.


Legal affairs

Obligations and requirements to provide online-banking services described above

Open banking systems are currently operated by agreements between institutions, and according to the comprehensive digital finance innovation plan regarding amendments to the EFTA, etc., it will lay out the legal landscape for open banking systems, and the amended EFTA currently proposed to the National Assembly includes such provision.

In addition, according to the Act on Special Cases Concerning Online-Only Banks, it is necessary to obtain an authorization to operate an online-only banking business, and if such banking business is operated by means of electronic financial transactions only, only KRW 25 billion is needed as a capital.

Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
The amended EFTA proposed to the National Assembly is expected to introduce a comprehensive payment service provider system that grants the right to open accounts, which was only held by banks and other financial institutions in the past. However, the proposed amendment did not pass the National Assembly.


Economic conditions

Market size for online-banking services and biggest companies in this business area

As of 2023, Korea’s open banking system has established itself as a core payment infrastructure, with participation from 57 financial institutions—including banks, card companies, insurance firms, and securities companies—and 79 FinTech companies. The system has attracted approximately 35.64 million subscribers, with an average of KRW 17 trillion in daily transaction volume. According to the Financial Services Commission, as of the end of November 2024, the open banking system recorded approximately 226 million linked accounts, 37 million active users, and 140 participating institutions.

Open banking in Korea has also been expanded beyond traditional banking to include card companies and insurance services, and notably, the system now supports corporate account inquiry services. Beginning January 2, 2025, corporate users as well as individual users have been able to utilize open banking services.

Since the launch of open banking, KakaoBank and KB Kookmin Bank have consistently ranked as the most frequently used platforms among retail users, based on mobile banking app usage data.

Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area

It is expected that FinTech companies will be able to actively launch specialized services that incorporate innovative ideas in addition to expanding existing services as they are able to access other financial companies and reduce fees by utilizing open banking services. However, it seems necessary to develop and provide services for the convenience of customers that have not been provided in the past by existing fintech companies.




Authors

Close

Choose country