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South Korea opens banking industry to new players after 30 years


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.

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