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China's Tencent, eBay join messaging app Kakao's bid for new South Korean internet bank

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Kakao Corp, the operator of South Korea’s largest mobile messaging app, said Tencent Holdings and eBay have joined its bid for a new South Korean internet bank license.

Tencent and eBay will make their investments through subsidiaries, which are expected to take stakes of 4 per cent or less in the bank should a license be gained, a Kakao spokesman said.

He declined to comment on financial terms.

South Korea is expected to grant one or two licenses for Internet banks this year. Kakao’s bid is one of at least three known bids.

An internet bank provides banking and financial services without physical branches. 

Tencent launched WeBank, China's first private-sector internet bank, in January, with a pledge to support small businesses that has been seen as a challenge to credit card issuers and other established lenders.

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