Kakao Bank eyes AI, overseas growth after best-ever quarter

Kakao Bank, South Korea's largest internet-only lender, posted record earnings in the first quarter, fueled by a diversified portfolio and strong growth in non-interest income. The company aims to build on that momentum with the rollout of artificial intelligence services later this month.
Operating profit and net income came in at 183 billion won ($134 million) and 137.4 billion won, respectively, in the January–March quarter — both up 23 percent from a year earlier and marking record highs for the bank.
'We have maintained balanced growth across all business segments and strengthened our growth engines by diversifying our portfolio, building on overwhelming customer traffic,' the company said in a statement.
Non-interest income surged 33 percent on-year to 281.8 billion won, accounting for 36 percent of total operating revenue.
The increase reflects gains in both fee and platform businesses, as well as improved returns from financial investments, the firm explained. Fee and platform revenue climbed 8.8 percent to 77.6 billion won, while income from investment assets reached 164.8 billion won.
The lender's customer base expanded to 25.45 million as of end-March, with monthly active users rising to 18.92 million. Total deposits rose to 60.4 trillion won, while outstanding loans reached 44.3 trillion won.
Kakao Bank said future growth will be driven by AI and overseas expansion, as it seeks to evolve into a full-service financial platform. Beginning later this month, it will gradually roll out AI-powered services, starting with 'AI Search,' which answers customer questions in real time, followed by an 'AI Financial Calculator' that enables interactive financial calculations.
Its global push is also gaining traction. Superbank, an Indonesian digital lender backed by Kakao Bank and Southeast Asian mobility giant Grab, turned a profit just one year after its official launch in June. Kakao Bank is also on track to become the first Korean bank in 27 years to establish operations in Thailand, pending approval of a digital banking license expected next month. If granted, it will partner with Thai financial group SCBX to begin operations in 2026.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Korea Herald

28 minutes ago

• Korea Herald

Meyle to expand supply of EV parts in Korea

Meyle, a German premium automotive parts maker, is ramping up efforts to expand its supply of electric vehicle parts to prepare for a surge in EV repairs in Korea. According to Meyle on Friday, the company announced a plan to expand its product portfolio to produce more than 4,000 components for electric and hybrid vehicles to meet growing global demand. Meyle's Korean office said it is focusing on strengthening industry-academic partnerships to train future technicians, and enhancing the capabilities of its certified Meyle auto service centers across Korea to better support EV and hybrid owners of imported vehicles. Innofact, in partnership with Meyle, surveyed 274 independent workshops in Germany, Austria and Switzerland, where EV adoption is growing quickly. Results showed that more than 80 million EVs will be on the road in Europe by 2035. Of them, 21 million EVs will be over 8 years old, many of them out of warranty and in need of independent service options. Despite such growth, the study indicated that most workshops are not yet equipped to handle EV repairs. Currently, only 1 in 5 workshops is fully capable of servicing high-voltage systems. Meyle pointed out that Korea is following a similar path. The country is expected to see the number of registered EVs surpass 1 million this year, with the government aiming to have 4.2 million EVs on the road by 2030. The German auto parts supplier noted that as warranties expire, more owners of EVs will have to turn to independent service centers while the infrastructure and technical expertise for EV repair remain limited. "This study shows that in the era of e-mobility, workshops will need more than just parts and they will need complete solutions," said a Meyle official. "Meyle will continue to offer specialized EV and hybrid parts for Korean customers and strengthen support for EV repair through Meyle auto service centers."

Korea Herald

28 minutes ago

• Korea Herald

Azerbaijan keen for Korean manufacturing in Alat FEZ: chairman

Azerbaijan is keen for industrial cooperation with South Korea and is inviting Korean manufacturers to invest in the Alat Free Economic Zone, said Valeh Alasgarov, Chairman of the AFEZ Authority, in an interview with The Korea Herald. Alasgarov was in Seoul to showcase AFEZ's legal framework, fiscal and non-fiscal incentives and strategic location as a gateway to European, Middle Eastern and Central Asian markets. 'We are looking for Korean manufacturers that specialize in high-value-added and export-oriented production,' said Alasgarov. 'AFEZ offers a uniquely tailored platform for such companies to thrive with the highest levels of legal protection, operational efficiency and financial benefits.' Alasgarov held a series of bilateral meetings with major Korean institutions, including the Korea Trade-Investment Promotion Agency and the Korea International Trade Association, to promote AFEZ and discuss future partnerships. 'These organizations expressed genuine interest in the zones," he noted, citing his meetings with officials from the Incheon Free Economic Zone Administration. Alasgarov acknowledged increased Korea and Azerbaijan trade ties but says industrial cooperation with Korea — particularly in manufacturing — remains underdeveloped. He highlighted Azerbaijan's strategic location as a key advantage for Korean manufacturers looking to expand into surrounding regions. According to Alasgarov, AFEZ's investment policy gives preference to companies engaged in high-value-added manufacturing with a clear export focus. 'As I always mention, we are ready to consider any proposal, but we will prioritize investors who bring innovative technologies, align with international standards and commit to export-oriented production,' he said. 'At least 75 percent of goods produced within AFEZ must be exported outside of Azerbaijan. This requirement is designed to ensure the zone's competitiveness and avoid the emergence of small-scale enterprises focused solely on the local market.' He pointed out that Korean industries — particularly in sectors like machinery, electronics, automobiles and pharmaceuticals — are well-aligned with AFEZ's strategic focus. Alasgarov stressed that AFEZ operates under a distinct legal regime that supersedes Azerbaijan's base economy laws, ensuring operational clarity and legal certainty for foreign investors. 'AFEZ is governed by a dedicated law passed by parliament and signed by the president and further regulated through internal AFEZ regulations,' he explained. 'This means Korean investors are not subject to base economy authorities. All licensing, taxation and labor issues are managed solely by AFEZ's independent regulatory body.' 'This eliminates bureaucratic overlap and provides Korean investors with a clear, consistent and protected legal environment for decision-making.' Alasgarov highlighted full exemption from VAT, corporate tax and customs duties on imports and exports. No personal income tax for employees earning up to 8,000 AZN ($4,700) per month, optional social security contributions for foreign personnel, no restrictions on foreign ownership, currency transactions or profit repatriation, and full protection of intellectual property rights are strong points for Korean manufacturers. 'AFEZ also provides industrial land plots with ready-to-use infrastructure and utilities, enabling immediate and cost-effective project implementation,' Alasgarov said. 'All business-related administrative processes — registration, licensing and permitting — are centralized in an on-site one-stop shop, with no involvement from base economy agencies.' sanjaykumar@

Korea Herald

2 hours ago

• Korea Herald

[Photo News] Hanwha Ocean's safety challenge

Top participants of Hanwha Ocean's in-company safety quiz event for foreign national employees pose for a photo on Thursday at the company's Geoje shipyard in South Gyeongsang Province, alongside Hanwha and local labor officials, including Lee Gil-seop (sixth from right), vice president of Hanwha Ocean, and Kim In-cheol (eighth from right), head of the Tongyeong District Employment and Labor Office. Around 200 foreign employees took part in the event, testing their knowledge of workplace safety and Korean culture. (Hanwha Ocean)