Up to two additional Internet-only banks could get the government's preliminary approval in May next year to officially launch by early 2020.

The country's financial regulators said Sunday that they will hold an information session next month, and receive applications in March next year to give preliminary approval to a maximum of two applicant groups in May.

After securing a formal approval and setting up data processing systems, the groups that get the go-ahead are expected to launch their services by the first half of 2020.

Two Internet-only banks, K-Bank and Kakao Bank, were launched last year, challenging traditional banks in South Korea and forcing them to cut commission fees and revamp their online and mobile banking services.

In September, the National Assembly passed a bill that allows non-financial firms to boost their stake in Internet-only banks from four to 34 percent.