South Korea’s three online-only banks have more than 58 million customers and are nearing 60 million, helped by mobile-based services. Customer growth has not automatically translated into stable profitability, and the key second-half task is diversifying revenue. KakaoBank, K Bank and Toss Bank are expanding products, partnerships and new customer segments. They also face pressure to sustain lending to mid- to low-credit borrowers while managing asset quality and non-interest income.

With the June 3 local elections over, attention in South Korea’s financial sector is shifting back to financial authorities and the National Assembly. Issues that lost traction during the campaign, including governance reform at financial holding firms, digital asset regulation, loan rules for non-resident single-homeowners and a compensation liability system for voice phishing, may return to the agenda in the second half. Regulators have also adjusted ELS sanctions and stepped up work on consumer protection and AI security threats.