Summary
- Kakao Bank announced that it has acquired a virtual banking license from the Thai government.
- Kakao Bank stated it will re-enter the Thai market through a consortium with Thai financial holding company SCBX.
- They revealed that after preparations for launching the virtual bank in Thailand, full-scale operations are scheduled to start from the second half of 2026.
License acquired... Operations to begin in the second half of next year
Internet-only bank Kakao Bank announced on the 19th that it has received a virtual banking license from the Thai government. A virtual bank is similar to Korea's internet-only banks.
On this day, Thailand's Ministry of Finance selected a consortium including Thai financial holding company SCBX and Kakao Bank as operators for the virtual banking business. This marks the re-entry of a Korean bank into the Thai market for the first time in 25 years, after withdrawing in the late 1990s during the Asian financial crisis.
Since signing a memorandum of understanding with SCBX in June 2023, Kakao Bank has continued to collaborate towards entering the Thai market. SCBX is a Thai financial holding company that owns around 20 financial and non-financial affiliates, including SCB (Siam Commercial Bank), which is one of Thailand’s top 3 banks.
A preparatory corporation for launching the virtual bank will be established in the third quarter of this year. Full-scale operations are planned to begin in the second half of 2026 after about a year of preparations.
Eui-Jin Jung, Reporter justjin@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
