Viva Republica, a South Korean operator of peer-to-peer payment app Toss, stayed on course to bid for Korea’s third license on online-only bank by recruiting global venture capital firms in place of Shinhan Financial Group that jumped ship at the last minute.

Viva Republica said on Monday that it pulled in global venture capital firms Altos Ventures, Goodwater Capital, and Ribbit Capital as stakeholders in its consortium that is vying to win license to become the country’s third internet-only bank operator.

Viva Republica will be the largest shareholder of the consortium with 67 percent ownership, while Altos Ventures, Goodwater Capital, and Ribbit Capital each contribute 9 percent. Global accreditation service provider Korea Electronic Certification Authority will pitch in 4 percent and online fashion platform Musinsa Magazine the remaining 2 percent.

Korea’s food delivery app Baedal Minjok bowed out and property information platform Jikbang settled for a partnership with Viva Republica instead of an equity investment.

Viva Republica said it will be open to any other investors wishing to join its team, vowing a differentiated banking platform backed by its peer-to-peer knowhow and 11 million Toss subscribers.

Earlier, the Toss-led consortium, had joined hands with Shinhan Financial Group to establish the country’s third online-only bank but the financial group withdrew from the consortium, as well as other mainstream players like Hyundai Marine & Fire Insurance Co.

With global venture capital firms participating as investors instead, Viva Republica said it will create an internet-only bank based on a global challenger bank.

The Financial Services Commission will receive applications for preliminary license on March 26 and 27 and announce a final bidder in May after review.

By Chung Joo-won and Lee Eun-joo

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