South Korea’s top banking group Woori Finance Holdings Co. plans to apply for regulatory approval next week for the spinoff of its credit card unit, sources said Sunday.

The state-run bank holding company will likely submit an application to the Financial Services Commission, the country’s financial watchdog, after next Tuesday to get the nod for the separation, according to the sources.

“We have already completed preparations for the application,” said an official at Woori Finance Holdings.

Once an application is submitted late this month, Woori Finance Holdings is looking to receive a regulatory blessing around the end of this year, he said.

The banking group had sought to hive off the credit card unit early this year, but it failed to win approval from the regulator, which feared it could lead to excessive competition in the local credit card industry.

Industry watchers said competition in the credit card industry would become fiercer if the credit card unit of Woori Finance Holdings gets the go-ahead for the spinoff and joins the market. (Yonhap News)