KakaoBank Corp. is pushing into Southeast Asia through a partnership with Thai financial group SCBX to set up a digital bank, marking the South Korean online lender’s first major overseas expansion.
The companies submitted their virtual banking license application to Thai regulators in September, competing for one of the limited permits in Thailand’s emerging digital banking sector. The Bank of Thailand requires successful applicants to launch operations within 12 months of receiving approval.
The move pits KakaoBank against regional fintech players and traditional banks in Thailand’s increasingly competitive digital banking landscape. SCBX, which controls Siam Commercial Bank and 10 other financial units, brings local market expertise and an established customer base to the venture.
KakaoBank plans to replicate its branchless banking model that has attracted more than 20 million users in South Korea. The partnership aims to capture Thailand’s underbanked population, particularly younger consumers who prefer mobile banking services.
The expansion comes as KakaoBank seeks new growth markets amid intensifying competition in its home market. The company hasn’t disclosed financial details of the partnership or its investment plans for Thailand.
