South Korea’s KakaoBank secured one of three virtual banking licenses in Thailand, marking the first Korean bank entry into the country since the Asian financial crisis prompted widespread withdrawals in the late 1990s.
Thailand’s Ministry of Finance announced Thursday that it selected the KakaoBank-SCBX consortium as a virtual banking operator, following a nine-month review process that began with applications submitted last September. The approved banks must begin operations within one year of the June 19 decision.
The partnership positions SCBX, parent of Siam Commercial Bank, as the majority stakeholder with KakaoBank holding at least 20%. The consortium also includes Chinese digital lender WeBank as a technology partner.
KakaoBank CEO Yoon Ho-young characterized the license as “a crucial step in exploring new markets”, though the bank faces significant execution challenges in a competitive landscape where established players like SCB already dominate.
The virtual bank initiative targets Thailand’s underserved populations through mobile-first services similar to Korea’s internet-only banking model. However, success will depend on the consortium’s ability to differentiate itself in a market where traditional banks have been rapidly digitalizing their services.
A preparatory corporation will be established in the third quarter with full operations expected in the second half of 2026.
