KakaoBank Signals Southeast Asia Entry... Pursuing Virtual Bank License Approval in Thailand

Signed a Business Agreement with Thai Financial Holding Company SCBX
"Advancing Thailand's Finance, Shaping the Future of Finance"

Yoon Ho-young, CEO of Kakao Bank (left), and Arsid Nandawidaya, CEO of SCBX, are posing for a commemorative photo at the signing ceremony of the "Business Agreement for Obtaining a Virtual Bank License in Thailand," held on the 15th at the SCBX headquarters in Bangkok, Thailand. Photo by Kakao Bank

KakaoBank is expanding beyond South Korea into the Southeast Asian market.

On the 16th, KakaoBank announced that it signed a Memorandum of Understanding (MOU) with SCBX (SCB X Public Company Limited), a major financial holding company in Thailand, to obtain a license for a virtual bank in Thailand.

SCBX oversees Siam Commercial Bank (SCB), one of the top three banks in Thailand, as well as Card X, which operates credit card and insurance sales businesses, and Innovest X Securities, which provides financial investment services. SCBX is also actively investing in financial technology, establishing itself as a leading fintech technology group in Thailand.

Through this agreement, KakaoBank and SCBX will form a consortium and collaborate to acquire a virtual bank license in Thailand. This follows the announcement by the Bank of Thailand (BOT) in January this year to issue new digital bank licenses. A virtual bank in Thailand refers to a "branchless bank," similar to internet-only banks in South Korea.

The two companies plan to cooperate at every stage?from forming the consortium to obtaining the license and preparing for establishment?to build a competitive virtual bank consortium. KakaoBank is expected to acquire more than 20% equity in the future virtual bank consortium, securing the position of the second-largest shareholder.

KakaoBank explained that the partnership will not only strengthen Thailand’s financial competitiveness but also play a positive role in improving financial service accessibility for financially vulnerable groups within Thailand. Based on KakaoBank’s proven non-face-to-face financial technology and platform capabilities in the domestic market, the company plans to expand its business foundation in the Southeast Asian market.

Yoon Ho-young, CEO of KakaoBank, said, "It is meaningful to showcase KakaoBank’s mobile banking technology to the global market," adding, "Together with SCBX, we will contribute to the advancement of local financial technology in Thailand and create the future of finance."

This content was produced with the assistance of AI translation services.