Preparatory corporation to be established in the third quarter of this year
Operations to begin in the second half of next year
"A bridgehead for the entry of K-finance and Korean companies into Thailand"
KakaoBank has obtained a virtual bank license from the Thai government. This marks the first re-entry of a Korean bank into Thailand since Korean banks withdrew from the country during the Asian financial crisis in the late 1990s. After a year of preparation, the company plans to officially begin operations in the second half of next year.
On June 19, the Thai Ministry of Finance announced that it had selected a consortium including KakaoBank and Thai financial holding company SCBX as a virtual bank operator. A virtual bank is a bank that provides financial services through a digital platform without offline branches, similar to internet banks in Korea. The Ministry of Finance and the central bank accepted license applications until September last year and conducted a nine-month review. In addition to the consortium involving KakaoBank, two other consortia were also granted virtual bank licenses.
The preparatory corporation for launching the virtual bank will be established in the third quarter of this year. After a preparation period, operations will begin in the second half of next year. KakaoBank will lead the planning of products and services, as well as the development of IT systems such as the mobile application, and will participate as the second-largest shareholder of the virtual bank. KakaoBank signed a memorandum of understanding (MOU) with SCBX in June 2023 and has continued its cooperation for entry into the Thai market.
On November 1 last year, Yoon Hoyoung, CEO of KakaoBank (left), and Archid Nandawidaya, CEO of SCBX, are discussing the progress of the joint virtual bank license at the KakaoBank Pangyo Office in Seongnam, Gyeonggi. Provided by KakaoBank
SCBX has more than 20 financial and non-financial affiliates, including Siam Commercial Bank (SCB), one of the three largest banks in Thailand, Card X, which operates a credit card business, and Innovest X Securities, which provides financial investment services.
Before entering Thailand, KakaoBank had already entered Indonesia. Based on a partnership with Grab, Southeast Asia's largest super app and IT platform, KakaoBank made an equity investment in the Indonesian digital bank Superbank, which now has more than 3 million customers. Under a financial consulting contract signed at the end of last year, a new service designed by KakaoBank will be launched in the second half of this year. The micro-savings product Celengan, inspired by KakaoBank's "Savings Box" idea, received the "Most Innovative Financial Product of the Year" award from the Indonesia Stock Exchange.
Yoon Hoyoung, CEO of KakaoBank, stated, "Obtaining the virtual bank license in Thailand is a stepping stone to pioneering a new market and a valuable opportunity to showcase the excellence of Korea's digital financial technology," adding, "We will serve as a bridgehead for the entry of Korean banks and companies into Thailand."
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