KakaoBank announced on the 19th that it has obtained a virtual banking license from the Thai government.
On the same day, the Thai Ministry of Finance selected a consortium that includes SCBX, a Thai financial holding company, and KakaoBank as a virtual bank operator. SCBX is a large financial holding company in Thailand that has over 20 financial and non-financial subsidiaries, including SCB (Siam Commercial Bank), one of the three major banks in Thailand.
The Thai Ministry of Finance granted virtual bank licenses to a total of three consortia, including the KakaoBank consortium. Thailand's virtual banks are similar to South Korea's internet banks in that they provide financial services through digital platforms without offline branches.
The preparatory corporation for the launch of the virtual bank will be established in the third quarter of this year. After approximately one year of preparation, it is expected to begin operations in the second half of 2026. KakaoBank will lead the planning of products and services as well as the establishment of IT systems, including mobile applications, and will participate as the second-largest shareholder in the virtual bank to be established in the future.
It has been about 25 years since a Korean bank withdrew from Thailand following the foreign exchange crisis in the late 1990s, marking its reentry into the country.
Yoon Ho-young, CEO of KakaoBank, noted, "Obtaining a virtual bank license in Thailand is a stepping stone for pioneering a new market, as well as a valuable opportunity to showcase the excellence of South Korea's digital financial technology," and added, "We will serve as a bridge for the entry of Korean banks and corporations into Thailand."