President Moon Jae-in on Tuesday called for deregulation of Internet-only banks.

The president made the remark during an event held at Seoul City Hall on Tuesday to discuss regulatory reform for Web-based banking services.

He said the overarching principle of the separation of banking and commerce should be observed while allowing exceptional measures for Internet-only banks so that IT firms can expand investment in capital and technology. 

Moon said the separation of banking and commerce is a core rule in South Korean finance, but added that a new approach is necessary if the current system suppresses the growth of new industries. 

The separation rule limits the ownership of a financial company by a non-financial firm.