Latest news with #KakaoBank
Korea Herald
12 hours ago
- Business
- Korea Herald
Kakao Bank secures 'virtual bank' license in Thailand
South Korea's internet-only lender Kakao Bank said Thursday it has received approval from the Thai government to operate a "virtual bank," marking the first reentry of a Korean bank into the Thai market in 25 years. The Thai Ministry of Finance recently selected a consortium formed by Kakao Bank and Thailand's leading financial group SCBX as one of three operators of the country's upcoming virtual banking system. "This license is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea's digital finance technology," Kakao Bank Chief Executive Officer (CEO) Yoon Ho-young said. Through the virtual bank project, Kakao Bank aims to serve as a bridgehead for Korean banks and companies looking to enter the Thai market, he said. The Kakao Bank consortium received high marks for its expertise in building digital banking infrastructure, advanced technological capabilities, and localization strategies. Thailand's virtual banking initiative is designed to offer financial services entirely through digital platforms without physical branches -- similar to South Korea's internet-only banks. Full-scale operations are expected to begin in the second half of 2026, following a one-year preparation period.
Korea Herald
14 hours ago
- Business
- Korea Herald
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.
Korea Herald
07-05-2025
- Business
- Korea Herald
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.
Korea Herald
07-05-2025
- Business
- Korea Herald
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. jwc@
Korea Herald
23-04-2025
- Business
- Korea Herald
Kakao Bank CEO pledges AI leadership at Thai fintech forum
All eyes on Thai central bank as Kakao Bank's consortium vies for virtual lender approval Kakao Bank CEO Yun Ho-young underscored the pivotal role of artificial intelligence in shaping the future of finance during a keynote speech at Money 20/20 Asia, positioning the digital lender as a front-runner in fintech innovation. Speaking Tuesday at one of Asia's largest fintech forums, Yun highlighted Kakao Bank's commitment to technological advancement, drawing on insights from his years at the helm of South Korea's largest internet-only bank. 'An AI-optimized user interface and user experience, backed by robust data capabilities, is no longer optional — it's essential for survival in this industry,' Yun said. 'Kakao Bank is fully committed to reshaping its UI and UX through artificial intelligence.' Held in Bangkok this year, Money 20/20 Asia draws senior executives from leading financial institutions and regulators across the region. The 2025 edition is expected to host around 4,000 attendees from 85 countries, including Singapore, Hong Kong and Australia. Yun was the sole Korean speaker invited to the event. He shared Kakao Bank's journey since its launch in 2017 by IT giant Kakao, highlighting its role in transforming Korea's digital banking landscape. The lender now serves 25 million users — the largest base among the country's three digital-only banks — with 19 million monthly active users. While noting that AI capabilities will be central to reshaping industry ecosystems, Yun stressed that technology alone would not redefine finance. 'Finance isn't a field that can be innovated by technology alone,' he said. 'Only institutions that combine proprietary data with a deeply user-centric mindset grounded in trust will emerge as dominant players.' Yun's visit to Thailand drew attention as it coincided with the Bank of Thailand's ongoing application process for new virtual banks — a race Kakao Bank has entered through its partnership with local financial group SCBX. Kakao Bank is part of the SCBX-led consortium, which also includes China's leading digital lender WeBank. The group is one of five contenders vying for three virtual banking licenses that the central bank is currently reviewing as part of Thailand's push to launch its first digital-only banks. According to local media reports, the SCBX consortium is a strong contender, alongside proposals led by state-owned Krungthai Bank — teamed with Gulf Group — and e-commerce firm Ascend Money. Once the banks are selected, they will have a year to prepare, with official operations expected to begin in mid-2026 under a phased rollout. Kakao Bank declined to comment on the selection, as an official announcement from local regulators is still pending. 'If we are granted a license, we plan to bring our digital finance expertise to Thailand, a market where Korean financial institutions have had relatively limited presence, and contribute to the growth of the country's fintech ecosystem,' a Kakao Bank official said. Kakao Bank's entry into Thailand's virtual banking sector would mark the return of a Korean bank to the country's financial landscape after 27 years, following the withdrawal of all Korean lenders in the aftermath of the 1997 Asian financial crisis.
