South Korea okays 3rd internet-only bank

South Korea's financial regulator on Monday granted preliminary approval for a new internet-only bank, a move that could further fuel competition with established bigger players and foster the fledging market. The Financial Services Commission (FSC) gave the initial approval to the consortium led by South Korean fintech firm Viva Republica.

The move came two months after the operator of popular financial service app Toss applied for a license to set up a new internet-only bank in its second attempt to make inroads into the banking industry.

Earlier this year, the commission rejected applications by the two consortia -- led by Viva Republica and Kiwoom Securities, respectively -- citing a lack of fundraising preparations and technical progress in their business plans.

Kiwoom Securities has since dropped its plan. Toss Bank is expected to begin operation soon after gaining final approval for the license in the first half of 2021, according to Viva Republica.

"Toss has already become the leading financial super app in Korea. With (the) digital bank license, we will be able to broaden our product offering even, so that we can accelerate our mission to innovate the financial industry," SG Lee, CEO of Viva Republica, said.

Toss provides over 40 financial services including money transfer, financial dashboard, credit score management and payments. Toss has more than 16 million registered users.

Tokyo stocks closed marginally lower on Monday, with traders taking money off the table following a rally in the previous session that was fuelled by a US-China trade deal and Britain's election.

The benchmark Nikkei 225 index, which surged nearly three percent last week, slipped 0.29 percent, or 70.75 points, to 23,952.35, while the broader Topix index was down 0.18 percent, or 3.11 points, at 1,736.87.

"It is no surprise to see players locking in profits after the recent gains," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

Wall Street was largely unmoved by the long-awaited US-China trade deal unveiled on Friday, which marked the end of a steady escalation in the dispute after nearly two years.

On Friday, the Nikkei index jumped more than 2.5 percent after two big risk factors passed -- the US-China trade deal and the British election.

"Since the two risk factors receded, sentiment is not too bad at all," Horiuchi said. The dollar fetched 109.38 yen in Asian afternoon trade, against 109.35 yen in New York late Friday.

This week, investors are watching a series of global data including US factory output and housing data due on Tuesday, said Shuji Hosoi, senior strategist at Daiwa Securities. Bank of Japan governor Haruhiko Kuroda's press conference after a two-day policy meeting through Thursday is also in focus, he said.

In Tokyo, automakers were among the losers, with Toyota slipping 0.33 percent to 7,785 yen, Honda trading down 0.46 percent at 3,206 yen and Nissan off 0.36 percent at 678 yen. Panasonic dropped 2.03 percent to 1,036.5 yen but Sony rose 0.30 percent to 7,466 yen.