KakaoBank CEO Yun Ho-young, left, and SCBX CEO Arthid Nanthawithaya pose for a photo at a joint venture agreement signing ceremony in Bangkok, Wednesday, to establish a virtual bank. Courtesy of KakaoBank
KakaoBank has entered into a joint venture agreement with SCB X Public Company Limited (SCBX), one of Thailand’s leading financial holding groups, to establish a virtual bank in the Southeast Asian country, the Korean lender said Thursday.
The agreement was signed in Bangkok on Wednesday by SCBX CEO Arthid Nanthawithaya and KakaoBank CEO Yun Ho-young, paving the way for the launch of a joint venture that will provide digital-only banking services in Thailand.
The virtual bank model, introduced by the Bank of Thailand, allows banks to operate entirely through digital platforms without physical branches, similar to Korea’s internet-only banking system.
While Thailand has seen rapid digital adoption, with smartphone penetration exceeding 90 percent and real-time payment services widely used, large segments of the population remain underbanked, underscoring unmet demand for accessible financial services.
Against this backdrop, the virtual bank to be launched by KakaoBank and SCBX is designed to deliver innovative, mobile-first financial solutions.
Korea’s largest internet-only bank will initially acquire a 10 percent stake in the joint venture and plans to gradually increase its ownership to 24.5 percent, securing its position as the second-largest shareholder.
Drawing on its proven track record in Korea, KakaoBank will lead front-end development of the platform, overseeing user interface and user experience planning as well as mobile application development, bringing Korean fintech expertise to the Thai market.
WeBank Technology Services, an affiliate of China’s online lender WeBank, will also participate as a technology partner to enhance collaboration and operational synergies.
Following a system buildout and preparatory phase, the virtual bank is expected to commence operations upon receiving regulatory approval from the Bank of Thailand.
KakaoBank’s expansion into Thailand builds on the success of its Indonesian business model. Super Bank, a digital lender in Indonesia and KakaoBank’s first overseas investment, rapidly grew its customer base to more than 5 million users and recently completed a local stock market listing.
KakaoBank plans to adapt this model to the Thai market while steadily expanding its presence across Southeast Asia and other regions.
“This expansion into Thailand is highly symbolic, marking the first return of a Korean bank to the Thai market in 25 years since the Asian financial crisis,” Yun said. “By leveraging Korea’s advanced digital banking capabilities, we aim to establish a successful virtual bank in Thailand and lay the groundwork for broader global growth.”
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