[THE INVESTOR] Kakao Bank, Korea’s second internet-only bank, began commercial operations on July 27.

Consumers can open an account at Kakao Bank, led by Kakao Corp, operator of the country’s dominant messaging app KakaoTalk, by downloading an application on their smartphones and verifying their personal information through the internet, according to bank officials.

It offers ordinary deposits, time deposits and card loans with more favorable interest rates than the ones offered by traditional lenders, along with commission discounts for withdrawal and remittance.

The company also provides easier money-transfer service through its mobile messenger KakaoTalk.

Such convenience and better financial terms are expected to appeal to local customers as the country’s first online bank, K bank, gained wide popularity following its launch in April.

Kakao’s consortium also includes Kookmin Bank, eBay and China’s Tencent Holdings, while K bank is formed by a consortium of KT, Woori Bank and 19 other companies.

By Alex Lee and newswires (alexlee@heraldcorp.com)