April 17, 2024

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E-Land Group on Oct. 16 announced that it has decided to join hands with South Korean unicorn startup Viva Republica, the creator of mobile financial service platform Toss.

E-Land World, the de facto holding company of the group, will participate in the fintech startup-led consortium to start an internet-only bank business.

“Our aim focuses more on creating synergies by providing differentiated services by cooperating with different sectors, instead of starting a finance business,” an E-Land Group official said in a statement.

Viva Republica on Oct. 15 announced that its consortium has applied for a license to set up a new internet-only bank in South Korea. The consortium also includes KEB Hana Bank and Hanwha Investment & Securities.

According to the Financial Services Commission, it will accept applications for an online-only bank until Oct. 15. Preliminary approval is expected to be confirmed in December and the new unit will be established after that.

According to E-Land, it secured a 10 percent stake in the new unit based on voting rights. Once the preliminary approval is confirmed, E-Land will pay a total of 18.7 billion won ($15.75 million) in two separate installments next year to buy newly issued shares issued by the new unit.

By Song Seung-hyun (ssh@heraldcorp.com)