Executive Summary

The Financial Services Commission (FSC) resolved the "Measures for Rational Adjustment of Internet-Only Banks' In-Person Service Scope" at its 12th regular meeting held on July 1, 2026. This plan eases existing regulations that had, in principle, restricted internet-only banks from engaging in business involving direct face-to-face interaction or communication with users (hereinafter referred to as 'in-person services'), allowing such services in exceptional cases. This measure is expected to enable internet-only banks to provide financial services to customers in more diverse ways and enhance accessibility.

Why It Matters

While internet-only banks have grown based on non-face-to-face channels, they have faced limitations in services requiring in-person interaction, such as subscribing to specific financial products or complex consultations. The FSC's adjustment of the in-person service scope is highly significant as it overcomes these limitations and lays the groundwork for internet-only banks to provide more comprehensive financial services. This is expected to strengthen the competitiveness of internet-only banks, reduce the service gap with traditional banks, and expand financial consumers' choices. Furthermore, it is anticipated to promote financial technology (fintech) innovation and positively impact the acceleration of digital transformation across the entire financial industry.

Impact on the Korean Market

The expansion of internet-only banks' in-person service scope will bring various changes to the domestic financial market. First, internet-only banks such as KakaoBank and Kbank may gain an advantage in attracting new customers and preventing the attrition of existing ones by expanding customer touchpoints. This will act as new competitive pressure on traditional banks, prompting them to further accelerate service innovation and digital transformation. In particular, the role of internet-only banks is likely to expand in areas such as complex financial product sales and asset management services. However, demands for managing potential risks and strengthening information security that may arise from the expansion of in-person services are also expected to increase. Domestic financial consumers will be able to access more convenient and diverse financial services.

Future Scenarios

The adjustment of internet-only banks' in-person service scope is expected to significantly impact the future form of financial services and the competitive landscape. In the short term, it will be important to observe what new service models internet-only banks will introduce by utilizing the permitted in-person services. In the long term, as the boundaries between traditional banks and internet-only banks become more blurred, a convergence and intensified competition across the entire financial industry are anticipated. Financial authorities are expected to closely monitor the effects of this measure and formulate additional policies to foster healthy market competition and protect consumers. Investors should continuously pay attention to the business expansion strategies of internet-only banks, the response plans of traditional banks, and the subsequent regulatory trends from financial authorities.