KakaoBank has signed a joint venture agreement with SCB X Public Company Limited (SCBX) one of Thailand’s leading financial groups, to establish a virtual bank in Thailand.
The agreement was signed in Bangkok by SCBX CEO Arthid Nanthawithaya and KakaoBank CEO Yun Ho-young. The partnership plans to launch a digital-only bank offering online banking services without physical branches.
This virtual bank model, introduced by the Bank of Thailand is similar to South Korea’s internet-only banking system where all services are provided through digital platforms.
KakaoBank has partnered with SCB X Public Company Limited (SCBX), one of Thailand’s leading financial groups to launch a virtual bank in Thailand. The joint venture agreement was signed in Bangkok by KakaoBank CEO Yun Ho-young and SCBX CEO Arthid Nanthawithaya.
The new bank will provide digital-only banking services, operating entirely online with no physical branches. This model, introduced by the Bank of Thailand is similar to South Korea’s internet-only banking system.
Thailand has high digital adoption, with over 90% smartphone usage and strong use of real-time payment systems. However, many people are still underbanked, creating demand for easy-to-use, mobile-first financial services. The new virtual bank aims to fill this gap with innovative digital solutions.
KakaoBank will start with a 10% stake in the joint venture and plans to increase it to 24.5%, becoming the second-largest shareholder. KakaoBank will lead app design and user experience while WeBank Technology Services from China will join as a technology partner to support the platform.
“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.”
KakaoBank’s move into Thailand follows the success of its Indonesia business. Super Bank, a digital lender in Indonesia and KakaoBank’s first overseas investment, quickly grew to over 5 million customers and has recently listed on the local stock market.
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