K Bank, South Korea’s first internet-only lender, and its major shareholder KT Corp. will aid Mongolia’s top conglomerate MCS Group launch the first virtual bank in the country modeled after their solutions.

K Bank said Sunday that the company and KT have agreed to sign a five-year contract worth 5.5 billion won ($4.9 million) with MCS Group to help the Mongolian conglomerate set up the country’s first internet-only bank. The contract includes transfer of internet bank technologies and services as well as management consultancy worth 2.3 billion won.

The three parties plan to finalize the contract next month.

MCS Group, one of Mongolia’s largest conglomerates, runs businesses spanning from telecom service and retails to mining and engineering. It has been preparing to launch the country’s first internet-only bank, tentatively named ‘M Bank,’ since early last year.

K Bank will support the Mongolian company to introduce its own internet-only bank by sharing their know-how in building and managing a virtual bank ranging from information technology to credit risk management system. KT, Korea’s top telecom company, will help the Mongolian company build its own credit scoring system. The company has developed K Bank’s credit scoring system.

By Oh Chan-jong and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]