South Korea is set to permit new domestic entities into its banking industry for the first time in 30 years. The Financial Services Commission (FSC) aims to increase competition in a sector currently dominated by five major banks. The move follows criticism from President Yoon Suk-yeol, who condemned banks for capitalizing on interest rate differences while consumers struggled. The FSC also revealed that more online-only banks would be approved, and regulations for foreign banks would be eased. Daegu Bank, a unit of DGB Financial Group, may be the first to benefit, intending to transform into a nationwide bank. This announcement affected market shares, with DGB's rising 1.2%, while others, including online lender KakaoBank, saw decreases.