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
