KakaoBank vows 'tangible' results in Southeast Asia

KakaoBank CEO Yun ho-young speaks at a press conference held in Fairmont Ambassador Seoul in Yeouido, western Seoul, on Tuesday. [NEWS1]

KakaoBank will produce tangible results in Southeast Asia this year, said the company's CEO on Tuesday.

“We’ve received a lot of offers from multiple countries to work together, and progress is being made in some Southeast Asian countries,” KakaoBank CEO Yun Ho-young said at a press conference in Yeouido, western Seoul, Tuesday.

“We’ll be able to reveal something tangible from at least one country this year,” he added, without specifying which countries.

Yun added that the company will likely enter overseas markets through partnerships due to the difficulty of obtaining a banking license abroad, though direct investment is still an option.

Tuesday's event was held to announce the company’s plans for this year.

Yun said the internet-only bank’s ambition is to become a leading financial service and everyday app.

To accomplish this, the bank plans to expand mortgages and introduce a fandom-based savings product.

The bank will expand mortgage to non-apartments, including low cost "villas" starting Thursday.

Koreans often find it difficult to obtain mortgages for non-apartments as valuations are notoriously difficult.

KakaoBank said it has developed an automated valuation model that can be applied to non-apartments.

The bank also introduced a fandom-based savings product from Tuesday.

Users are encouraged to deposit funds when their favorite stars do something special.

For instance, they could deposit funds every time their favorite singer uploads a photo on social media.

Yun said the company’s floundering stock is expected to improve as the company’s operating profit grows, which in turn will raise its financial soundness and help the company provide shareholder returns.

KakaoBank stock has plunged 75 percent since its peak in August 2021. It closed at 23,750 won ($18) Tuesday.

BY JIN MIN-JI [jin.minji@joongang.co.kr]