Under the Bank Act of Korea, a commercial bank is allowed to engaged in its banking business, including (ⅰ) core business such as deposit-taking, lending, and domestic and foreign exchange businesses, (ⅱ) concurrent business, such as trust business, credit card business, investment trust management business, and distribution business for indirect investment securities, and (ⅲ) ancillary business, such as guarantee business, consulting and advisory business, insurance agency business, factoring business, and financial derivative transaction business, etc. Recently, the rapid change in financial environments is taking place domestically and worldwide. As the financial innovation and internationalization are continuing in the financial industry, the competition among financial institutions is becoming more fierce. Especially, in Korea, as the new law of consolidating the capital market-related laws is scheduled to be implemented in February 2009, a financial investment company, which can conduct capital market related activities concurrently, is highly likely to expand its market share in the financial industry and to become a strong competitor against banking institutions. Therefore, it is persuasive that the measures for enhancing the competitiveness of the banking industry, one of the core financial industry, should be taken, in order to upgrade the financial industry as well as the banking industry. In line with this, this article suggests the expansion of a bank’s banking business, in order to promote its competitiveness: (ⅰ) the expansion of its current securities related businesses, e.g., (a) permitting underwriting business of corporate bonds and stocks in addition to current government bonds and public bonds, (b) permitting dealing business of stocks in addition to the current government bonds, public bonds and corporate bonds, (c) allowing securities brokerage business. In addition, this article suggests allowing investment advisory business as well as discretionary investment business as a bank’s concurrent business. Also, the expansion of the scope of a bank’s ancillary businesses is needed: leasing business and installment finance business, custodian business and real estate agency business, etc. need to be permitted. In particular, this article suggests introducing the negative system in defining the scope of a bank’s ancillary business, deviating from current positive system. It is understandable that a strong opposition from the securities industry in respect of permitting a bank’s securities activities might arise. However, as long as the well-managed risk control system in relation to a bank’s securities business engagement is maintained and the strict firewall system is procured, the bank’s engagement in securities business would be no harm to the financial industry and the financial system overall, but be beneficial to the upgrading of the financial industry. Finally, this article recommends that the infrastructure and legal system for introducing a universal banking system should be gradually prepared.