South Korea’s financial regulator on Thursday approved a request from DGB Daegu Bank to transform into a commercial bank, making it the seventh nationwide bank in the country.

Daegu Bank will be the first regional bank in the country’s history to become a full-fledged commercial bank. It will also be the first new commercial bank in 32 years, according to the Financial Services Commission (FSC).

“The Financial Services Commission, together with the Financial Supervisory Service and an external evaluation committee consisting of private experts, have thoroughly reviewed the bank’s request to become a commercial bank,” the FSC said in a press release, noting the bank filed its official request on Feb. 7.

“As a result, (they) decided that Daegu Bank have met all requirements to transform into a commercial bank,” it added.

The bank’s request to become a nationwide bank came after the financial authorities announced plans to promote such a transition of regional and savings banks in July 2023.

They also annou
nced the simplification of the transition process at the start of this year, allowing existing banks to transform into commercial banks without having to shut down their business first.

The FSC said DGB Daegu Bank plans to open 14 new branch offices over the next three years in the Seoul metropolitan area, and Chungcheong and Gangwon provinces, promoting competition among banks in the areas where it will freshly establish its presence.

“We expect increased benefits to consumers as a result,” it said.

Source: Yonhap News Agency