KakaoBank enters Thai market with SCBX joint venture

KakaoBank CEO Yoon Ho-young, left, and SCBX CEO Arthid Nanthawithaya sign a partnership deal on Thursday at SCBX headquarters in Bangkok, Thailand.

KakaoBank is partnering with a leading Thai financial firm in its first foray into the Southeast Asian market.

The Korean company signed a memorandum of understanding with Thailand’s SCB X Public Company Limited (SCBX) to acquire a license for opening a virtual Thai bank, it said on Friday.

Under the partnership, both companies will establish a consortium to obtain the virtual bank license.

Virtual bank refers to a type of internet-only bank that does not operate any sales offices offline.

In January, the Bank of Thailand announced a plan to issue new digital bank licenses.

After forming the consortium, KakaoBank is expected to acquire an over 20 percent stake to become the second-largest shareholder.

Via the deal, KakaoBank aims to contribute to Thailand’s financial development as well as widen economically marginalized classes' accessibility to banking services.

"KakaoBank is pleased to bring its mobile banking expertise to the global market," KakaoBank CEO Yun Ho-young said. "With SCBX, we are determined to play our role in advancing Thailand’s financial technology."

SCBX CEO Arthid Nanthawithaya said the partnership will allow customers “to conveniently access a wide range of financial products and services at a greater accessibility through technology."

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]