Internet-only banks are dragging their feet without disclosing concrete participation plans, even as financial regulators push them to limit credit loans and negative-balance overdraft accounts, critics say. Observers in the market suggest the online-lending-focused banks may be trying to delay their participation as long as possible to protect profits.
The three internet banks—KakaoBank, K bank, and Toss Bank—have not presented specific plans to reduce lending, according to financial industry sources Tuesday.
KakaoBank said only that it "has previously operated with self-imposed application limits to maintain stable household loan management" and that it "is reviewing additional management measures."
The situation is similar at the other banks. K bank said it "manages new credit loan handling within a very limited scope," while Toss Bank explained that it "plans to progressively strengthen credit loan management, but specific figures have not yet been decided."
Within the industry, there is talk that internet banks tend to enjoy policy benefits while cooperating with regulators' requests as late as possible. KakaoBank alone had a balance of credit loans and negative-balance accounts of 18.283 trillion won as of the end of last year, accounting for 39% of its total loans. An official at a commercial bank pointed out, "Internet banks have grown in size, but it is questionable whether they are playing a role that matches that growth," adding, "Shouldn't they come up with actual figures and plans, rather than just saying they will strengthen management on their own?"
