Kakao Bank wins approval for Thailand's first virtual bank

Korean lender sets sights on second-half 2026 launch under SCBX-led joint venture
Kakao Bank, South Korea's leading internet-only lender, has secured final approval to establish Thailand's first digital bank, marking the official launch of its joint venture with Thai financial giant SCBX to roll out services next year.
The Bank of Thailand on Thursday announced the winners of its long-awaited virtual banking licenses, selecting three applicants from five contenders. The SCBX-led consortium — whose members include Kakao Bank and Tencent-backed Chinese digital lender WeBank — was among those granted a license.
The other winners were ACM Holding Company and a consortium led by state-run Krung Thai Bank.
The licenses were issued following a review by Thailand's Ministry of Finance, based on central bank recommendations. Authorities assessed business models, digital capabilities and each group's potential to boost financial inclusion, particularly for underserved consumers and small businesses.
Thailand's central bank said the digital lenders are expected to enhance customer experience, increase efficiency, and drive healthy competition through innovation and better pricing. Regulators also weighed the optimal number of new banks to foster healthy competition while maintaining financial system stability.
The approved candidates are required to establish a corporate entity in the third quarter and commence operations within one year, setting the stage for operations to begin in the second half of 2026.
The milestone comes two years after Kakao Bank, a subsidiary of Korea's IT giant Kakao, signed a memorandum of understanding with SCBX in June 2023 to collaborate on developing Thailand's first digital bank. SCBX is the holding company of major Thai lender Siam Commercial Bank.
This marks Kakao Bank's second overseas venture after launching Superbank in Indonesia through a joint venture with Grab. It remains the only Korean internet-only bank with international operations.
The move also signals a meaningful return of Korean banking to Thailand, nearly three decades after Korean lenders exited the market during the 1998 Asian financial crisis.
'Drawing on its experience in shaping Korea's digital banking landscape, Kakao Bank will play a leading role in building the new Thai digital bank, overseeing the development of its technology infrastructure and service design,' a company official told The Korea Herald.
Once established, Kakao Bank will become the second-largest shareholder in the new online lender.
In response to the approval, Kakao Bank CEO Yun Ho-young called the license "a stepping stone into a new market and a valuable opportunity to showcase the strength of Korea's digital finance technology," adding that the firm aims to serve as a bridgehead for Korean banks and companies seeking entry into the Thai market.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Korea Herald

3 hours ago

• Korea Herald

[Editorial] Brains before algorithms

South Korea's push for AI leadership must confront the challenge of retaining talent South Korea has declared its ambition to become one of the world's top three powers in artificial intelligence. The goal is bold, the funding substantial: President Lee Jae Myung has pledged 100 trillion won ($72.5 billion) to the sector. Earlier this week, Lee appointed Ha Jung-woo, a respected AI researcher formerly at Naver, as the country's first senior presidential secretary for AI policy. A sweeping initiative, backed by public and private investment, is beginning to take shape. Alongside infrastructure plans such as a major AI data center in Ulsan co-funded by SK Group and Amazon Web Services, Lee's initiative signals a serious — if belated — push to catch up in the global AI race. But lofty goals and generous budgets alone do not make an AI powerhouse. Without the talent to match its vision, South Korea risks building a hollow structure: well-funded, well-planned and ultimately weakened by the steady loss of its brightest minds. The warning signs are clear. According to the Korea Chamber of Commerce and Industry, South Korea ranks 35th out of 38 OECD countries in net AI talent mobility. For every 10,000 residents, 0.36 more AI professionals leave the country than arrive. This widening 'brain deficit' threatens the very foundation of Lee's AI strategy. The trend is not confined to AI. Across science and technology fields, more Korean professionals are seeking careers abroad, while fewer foreign experts are choosing to relocate to South Korea. The KCCI analysis also shows that the country's innovation pipeline is faltering: fewer international research partnerships, declining venture investment and a generation of STEM graduates opting for medical school or emigration over startups and R&D. This is not simply about money. Young Korean scientists and engineers are drawn to countries where advancement is based on merit, not seniority. They want flexible work environments, robust research infrastructure and room to take intellectual risks. Yet at home, they face rigid institutional norms: a 52-hour workweek cap, seniority-based pay and limited opportunities for global collaboration — all of which hamper South Korea's ability to attract and retain top-tier talent. The financial cost of this exodus is high. Each college graduate who leaves to work abroad represents more than 550 million won in lost public investment and future tax revenue. The long-term damage is even greater. As the scientific workforce erodes, the innovations South Korea hopes will define its economic future could stall before they begin. The government's investment in AI infrastructure is a necessary step. Ha Jung-woo's appointment and his advocacy for a sovereign AI trained on Korean language and culture show strategic insight into the risks of overdependence on foreign platforms. But infrastructure must be matched by reforms that address the root causes of the brain drain. The task ahead is not just to slow the outflow, but to reverse it. South Korea needs a comprehensive 'brain gain' strategy that builds a national ecosystem where talent can thrive. This includes more flexible labor rules, performance-based rewards and stronger support for research and innovation. It also means creating meaningful incentives for foreign experts to come, and to stay, through streamlined visas, tax benefits and improved housing and education options. By the end of 2025, South Korea is expected to face a shortfall of nearly 15,000 AI professionals. And in an era when AI capability is closely tied to national security, economic competitiveness and global standing, there is little margin for error. South Korea has the financial resources, political resolve and technological foundation to lead in AI. But success will depend less on the amount invested and more on the country's ability to cultivate — and retain — the people who will drive that future forward. In the AI age, it is not the machines but the minds that matter most.

Korea Herald

3 hours ago

• Korea Herald

[Lee Byung-jong] President Lee's pragmatic diplomacy

Less than two weeks into office, President Lee Jae Myung is already busy shaping a new course for South Korea's foreign policy — one he describes as 'pragmatic diplomacy.' His packed diplomatic calendar signals both urgency and ambition. Earlier this week, he attended the G7 summit in Canada at the invitation of the host, marking South Korea's return to global diplomacy after six months of absence during the country's turbulent leadership transition. Later this month, he is scheduled to travel to the Netherlands to participate in the NATO summit as a representative of the alliance's Indo-Pacific partners. Despite criticism over the rushed pace and pending domestic challenges, Lee is determined to reestablish South Korea as a central player on the global stage. 'Democratic Korea is back,' declared national security adviser Wi Sung-lac. Still, many are asking: What does 'pragmatic diplomacy' actually mean in practice? Lee's approach marks a distinct departure from the 'values-based diplomacy' of his predecessor, Yoon Suk Yeol, who prioritized alliances with countries sharing democratic values. In contrast, Lee's strategy is rooted in flexibility and realpolitik — prioritizing economic interests and strategic outcomes over ideological alignment. In today's volatile geopolitical environment, with mounting tensions among global powers, Lee seems to be betting that ideological rigidity is a liability, not an asset. While the full contours of Lee's diplomatic doctrine are still emerging, his initial moves offer important clues. The order of his phone calls to world leaders in his first days in office has been particularly telling. As expected, his first call was to US President Donald Trump — a nod to the enduring importance of the South Korea-US alliance, especially on issues of trade and security. The 20-minute call reaffirmed the long-standing priority Korean presidents place on their alliance with Washington. More surprising was his second phone call — to Japanese Prime Minister Ishiba Shigeru. Coming from a liberal background, Lee had been expected by some to reach out to China's Xi Jinping next, following the pattern of previous liberal leaders like President Moon Jae-in. Lee has, in the past, been critical of Japan's stance on historical issues, leading many to doubt whether he would prioritize Tokyo early on. However, this decision was widely interpreted as a signal of Lee's practical mindset and willingness to improve ties with Japan despite lingering historical grievances. Lee's third call to Xi Jinping was hardly unexpected, given that China remains South Korea's largest trading partner. But his fourth and fifth calls did raise eyebrows: He spoke with the leaders of the Czech Republic and Vietnam, countries often overlooked in the early stages of diplomatic outreach by past presidents. His rationale, again, was pragmatic. The Czech Republic recently awarded a 26 trillion-won nuclear power plant construction deal to a South Korean bid — a hard-won contract that edged out fierce competition from France. Lee's outreach aims to solidify that economic relationship and possibly expand it. Vietnam, meanwhile, is South Korea's third-largest trading partner and the leading destination for Korean foreign investment, making it a natural choice for early engagement. The sequence of these conversations echoes one of Lee's key refrains: 'The economy is security, and security is the economy.' His decision to attend the G7 and NATO summits underscores this philosophy. At the G7, discussions focused heavily on global trade friction — particularly the fallout from President Trump's protectionist tariffs. With trade accounting for 80 percent of South Korea's GDP, these are matters Seoul cannot afford to ignore. His participation in the NATO summit is more delicate. Lee had previously expressed reservations about Korea getting too involved in European security matters, especially the war in Ukraine. However, Europe is now a growing market for South Korean defense exports. From that angle, attending the NATO meeting is less about ideology and more about ensuring access to new economic opportunities. But Lee's pragmatic diplomacy will soon face its toughest challenge: North Korea. A purely practical foreign policy could falter if Lee reverts to the liberal camp's traditional approach of engagement with Pyongyang at the expense of alignment with key allies. President Moon Jae-in, for example, pursued such a strategy, which strained Seoul's trilateral coordination with Washington and Tokyo. That fragile alliance, revitalized under President Yoon, President Biden, and former Japanese Prime Minister Kishida in the 2023 Camp David summit, could be tested once more — especially now that all three leaders have exited the political stage. Despite his calls for pragmatic diplomacy, Lee may find himself pulled back toward a more ideological, nationalistic foreign policy. Personnel choices offer early signs of this tension. National security adviser Wi Sung-lac is widely viewed as an advocate of strong alliances, particularly with the US and other democratic partners. But Lee's pick for National Intelligence Service chief, Lee Jong-seok — a former Unification Minister — is a well-known proponent of an independent foreign policy that places inter-Korean relations above external alliances. These two key advisers, representing opposing schools of thought, could end up pulling President Lee in divergent directions, risking confusion and inconsistency in policy execution. In short, President Lee's diplomatic approach shows promise in its economic focus and global engagement. His outreach to non-traditional partners and participation in key summits signal an intent to broaden South Korea's international standing. But this pragmatic posture will only succeed if it can maintain consistency and resist being derailed by ideological pulls — especially when it comes to North Korea. The balancing act between idealism and realism, between national pride and global cooperation, will define the credibility and effectiveness of Lee's foreign policy in the years to come.

Korea Herald

10 hours ago

• Korea Herald

Banila Co Launches Covericious Ultimate Cover Cushion on Amazon U.S., Expanding Global Presence

The cushion chosen by Korean consumers is ready to make its global debut! SEOUL, South Korea, June 19, 2025 /PRNewswire/ -- As one of K-beauty's most trusted names, Banila Co has officially launched its Covericious Ultimate Cover Cushion on Amazon in the U.S., accelerating its push into global beauty markets. Now available to American consumers, the Covericious Ultimate Cover Cushion builds on the legacy of the 'Covericious Ultimate White Cushion,' which has surpassed 4 million cumulative units in sales [1]. With a strong reputation built across both Korean and international audiences, Banila Co is entering the U.S. market with the aim of further amplifying its brand presence worldwide. Following the global success of its hero product, the Clean It Zero Cleansing Balm —ranked the No. 1 cleansing balm brand worldwide [2] —Banila Co is on track to replicate that momentum with its latest launch. The arrival of the Covericious Ultimate Cover Cushion has generated buzz among beauty consumers eager for high-performance, skincare-infused makeup solutions. The product has also been distinguished for its excellence, ranking first in customer satisfaction —as chosen by Korean consumers—in Korea's base makeup category for two consecutive years at the FIRST BRAND AWARDS 2025 [3], reinforcing Banila Co's reputation for quality and innovation. More than just coverage, the Covericious Ultimate Cover Cushion is formulated with white truffle extract and a proprietary flower complex to help brighten and clarify skin while delivering seamless, buildable coverage. Its weightless texture offers comfortable wear throughout the day—and night—with tested wear of up to 100 hours [4]. The sleek, travel-ready compact makes flawless skin just a tap away, wherever you are. To meet the needs of a truly global customer base, Banila Co has developed a versatile range of 20 inclusive shades tailored to a wide spectrum of skin tones around the world. This internationally developed shade range reflects the brand's collaboration with global color specialists and insights from U.S.-based makeup artists, ensuring a custom-fit match for every complexion—from fair to deep skin tones. "We're excited to bring Banila Co's advanced base makeup technology to the global stage with the launch of the Covericious Ultimate Cover Cushion on Amazon U.S.," said a Banila Co representative. "We remain committed to advancing K-beauty's presence worldwide by delivering high-quality, inclusive, and performance-driven products that resonate with today's beauty consumer."