News

South Korean internet-only lender Kakao Bank has received official approval from the Thai government to operate a virtual bank, marking a significant step in its global expansion strategy and the first re-entry of a Korean bank into the Thai financial market in 25 years. The Ministry of Finance of Thailand has selected a consortium led by Kakao Bank and SCBX, one of Thailand’s leading financial groups, as one of three successful applicants licensed to establish a virtual banking presence in the country. The announcement places Kakao Bank at the forefront of Thailand’s digital banking evolution, which aims to provide comprehensive financial services entirely through online platforms without the need for traditional brick-and-mortar branches. Yoon Ho-young, Chief Executive Officer of Kakao Bank, described the licence as a pivotal milestone in the company’s growth strategy. “This licence is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea’s digital finance technology,” he stated. The consortium was highly rated for its robust digital banking infrastructure, advanced technological expertise, and strong localisation strategies—factors that aligned closely with the Thai government’s vision for a digitally driven banking future. The virtual banking system in Thailand is scheduled to enter full-scale operations in the second half of 2026, following a one-year preparation period. Kakao Bank’s involvement is expected to serve as a strategic entry point not only for Korean financial institutions but also for broader Korean corporate interests looking to establish a foothold in the Thai market. -Yonhap

Shares in Foshan Haitian, China’s leading soy sauce manufacturer, made a modestly positive debut on the Hong Kong Stock Exchange on Thursday 19 June, following a US$1.3 billion initial public offering – one of the largest in the territory so far this year. The Guangdong-based company saw its shares rise as much as 4 per cent in early trading, before settling to close at HK$36.50, up 0.55 per cent from its listing price of HK$36.30. The listing price had been set at the upper end of its offer range. The performance was notably resilient in the context of a broader market decline, with the Hang Seng Index falling by 2 per cent on the day. Chairwoman Cheng Xue described the listing as “another important milestone in Haitian’s development history”. Established in 1955 as a small family-run workshop, Foshan Haitian has since grown into China’s largest condiments producer by volume for the past 28 consecutive years. The Hong Kong debut marks its second major market entry, following its Shanghai listing in 2014. The float attracted substantial interest from cornerstone investors, with Hillhouse Capital, Singapore’s sovereign wealth fund GIC, and Royal Bank of Canada’s Global Asset Management among those committing to US$595 million worth of shares. The company also exercised its greenshoe option, signalling robust investor appetite. Proceeds from the offering are earmarked for product development, production expansion, and international market penetration, particularly across Southeast Asia and Europe. The listing comes at a time of renewed momentum for Hong Kong’s capital markets, following years of subdued activity driven by pandemic-related disruptions, domestic economic stagnation in China, and increased geopolitical scrutiny. Recent high-profile listings, including battery giant CATL and pharmaceutical group Jiangsu Hengrui, have revived optimism around the city’s IPO prospects. Edward Au, Deloitte China’s southern region managing partner, noted that Hong Kong is “well-positioned to contend for the top position in the global IPO market in 2025”, though he cautioned that broader macroeconomic and geopolitical uncertainties could still present headwinds. Foshan Haitian’s debut follows Jiangsu Hengrui’s US$1.3 billion raise in May, one of the largest biopharmaceutical IPOs globally this year, and CATL’s US$4.6 billion listing — the biggest to date in 2025. According to Bloomberg data, IPOs and follow-on share sales in Hong Kong have so far generated US$26.5 billion as of mid-June, a substantial increase from US$3.8 billion over the same period last year. The Hong Kong Stock Exchange currently has dozens of pending applications from mainland Chinese firms seeking to list, underscoring the resurgence of confidence in the city’s equity markets. -AFP

VinFast, the Vietnamese electric vehicle (EV) manufacturer backed by Vingroup, has announced the opening of its first dealership in San Diego, California, with operations set to commence later this month. This move signals a notable strategic shift as the company leans into a dealership model in an effort to bolster sales across the United States. Having initially pursued a direct-to-consumer sales strategy akin to that of Tesla, VinFast has reassessed its approach in light of a series of challenges, including tepid demand, intensifying competition and the implications of recently imposed U.S. tariffs on Chinese and Vietnamese goods. The company’s latest move underscores its renewed commitment to the American market despite these headwinds. VinFast confirmed it is actively seeking and evaluating additional dealership opportunities throughout California, reflecting a broader recalibration of its market entry strategy. Earlier this month, the company’s chair disclosed plans to introduce an electric bus to the U.S. market, further diversifying its product offering in the region. Concurrently, VinFast is in the process of scaling back its U.S. retail footprint by closing selected showrooms, with a renewed focus on expansion in Asian markets, including Indonesia and India. Shares in VinFast edged slightly higher following the announcement. -Reuters

HSBC has announced the appointment of Christopher Chua as Global Head of Mergers and Acquisitions, effective immediately. Chua, a seasoned investment banker with more than two decades of experience, will continue to be based in Hong Kong. Previously serving as the bank’s Head of M&A for Asia, Chua takes the helm of the global M&A division following the departure of former global head Kamal Jabre, who left the firm last month to join JPMorgan. The appointment was confirmed by a company spokesperson and detailed in an internal memo reviewed by Reuters. Adam Bagshaw, HSBC’s Global Head of Capital Markets and Advisory, noted in the memo that Chua will lead the M&A franchise across Asia and the Middle East, regions where HSBC maintains a strong competitive edge and delivers significant client value. Chua joined HSBC in 2022 from Credit Suisse to lead its Asia M&A operations and has a proven track record advising multinational corporations on complex cross-border transactions. His promotion marks the latest senior leadership change as HSBC continues to reshape its global investment banking business with an increased focus on Asia and the Middle East. As part of its strategic refocus, the bank has scaled back its M&A and certain equity operations in Europe and the Americas earlier this year. This shift aligns with HSBC’s broader strategy to deepen its footprint in high-growth markets across Asia and the Middle East. In addition, Vikas Seth will chair the bank’s M&A business alongside his current responsibilities as Vice Chair of Corporate and Institutional Banking, where he oversees strategic client engagement. -Reuters

LG Energy Solution, South Korea’s foremost battery manufacturer, has announced a strategic agreement with Toyota Tsusho Corporation, a trading affiliate of Japan’s Toyota Group, to establish a battery recycling joint venture in the United States. The new entity, named Green Metals Battery Innovations LLC, will be based in Winston-Salem, North Carolina. The facility will focus on the pre-processing of battery production scrap, dismantling and shredding material to extract black mass—a substance rich in valuable metals including nickel, cobalt, and lithium. Scrap generated during the production of electric vehicle batteries for Toyota Motor Corporation will be supplied by LG Energy Solution. The extracted black mass will subsequently undergo a separate post-processing phase to recover raw materials. These recovered inputs will then be recycled into the production of new battery materials. Construction of the facility is slated to begin later this year, with operations scheduled to commence in 2026. Once operational, the plant will possess an annual processing capacity of 13,500 tonnes of scrap—equivalent to more than 40,000 automotive batteries. LG Energy Solution underscored the strategic significance of the partnership with Toyota Tsusho, citing the latter’s advanced pre-processing technology and proven operational capability. The collaboration is expected to play a pivotal role in reinforcing the company’s battery recycling infrastructure across North America. “This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America,” stated Kang Chang-beom, Chief Strategy Officer at LG Energy Solution. -Yonhap