Kakao Bank secures 'virtual bank' license in Thailand
South Korea's internet-only lender Kakao Bank said Thursday it has received approval from the Thai government to operate a "virtual bank," marking the first reentry of a Korean bank into the Thai market in 25 years.
The Thai Ministry of Finance recently selected a consortium formed by Kakao Bank and Thailand's leading financial group SCBX as one of three operators of the country's upcoming virtual banking system.
"This license is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea's digital finance technology," Kakao Bank Chief Executive Officer (CEO) Yoon Ho-young said.
Through the virtual bank project, Kakao Bank aims to serve as a bridgehead for Korean banks and companies looking to enter the Thai market, he said.
The Kakao Bank consortium received high marks for its expertise in building digital banking infrastructure, advanced technological capabilities, and localization strategies.
Thailand's virtual banking initiative is designed to offer financial services entirely through digital platforms without physical branches -- similar to South Korea's internet-only banks.
Full-scale operations are expected to begin in the second half of 2026, following a one-year preparation period.
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