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Korea Herald
07-05-2025
- Business
- Korea Herald
[Hello Thailand] 'Thailand ready to join Asia's financial hubs'
Deputy finance minister touts tax breaks, digital banks in push for global investors With its geographical connectivity and sound regulatory infrastructure, Thailand is well-positioned to emerge as the financial hub of Southeast Asia, according to Deputy Minister of Finance Julapun Amornvivat. 'We believe Thailand can serve as a strong financial hub in Southeast Asia,' Amornvivat said in a recent interview with The Korea Herald. He visited Seoul late last month to attend the Ignite Thailand-Korea Business Forum, co-hosted by Herald Media Group, the Royal Thai Embassy in Korea and the Industrial Estate Authority of Thailand. 'With our central location in Southeast Asia and proximity to neighboring countries such as Laos, Myanmar and Cambodia, we have a strategic edge over others.' While Hong Kong and Singapore currently serve as Southeast Asia's key financial hubs, Julapun emphasized that Thailand can complement their roles and contribute to the broader region. 'There are already financial centers in Singapore and Hong Kong, but Southeast Asia still has room for another hub,' he said. 'We are committed to strong regulatory practices, transparency and sound governance.' As part of this effort, Thailand plans to establish the Office of Supervisory and Promotion of Financial Hub Business — a one-stop regulatory body designed to streamline licensing and oversight processes. 'This is a long-term vision — not something for just a year or two, but a plan spanning the next decade or more,' he said. 'In the initial phase, we'll focus only on international financial services, not domestic activities. A phased approach is essential.' For South Korean financial firms, Thailand has long been considered a challenging market, with high entry barriers in place since the late 1990s, when many withdrew during the Asian financial crisis. But that may be changing, Amornvivat said. 'Our banking sector has been protected for the past 50 years. Now, we are opening up select areas,' he noted. One potential area of change is the approval of digital banking licenses. Kakao Bank, a South Korean internet lender, has joined a consortium led by SCBX — a major Thai bank — to bid for a virtual banking license. If successful, the SCBX consortium is expected to launch official operations by mid-2026. When asked about the approval timeline, Amornvivat replied, 'It is in process,' without elaborating further. However, he reaffirmed Thailand's openness to foreign capital. 'The floor is open. There will be opportunities for all types of firms to enter Thailand,' he said. 'I hope that not only Korean firms but also global players will take advantage of our tax incentives and establish a strong presence here.' Among other growth drivers, Amornvivat highlighted the Land Bridge project and the establishment of integrated entertainment complexes. The Land Bridge initiative aims to connect the Gulf of Thailand and the Andaman Sea through a 90-kilometer highway and railway, providing an alternative trade route to the heavily congested Strait of Malacca. 'We've received significant interest in the Land Bridge project from countries like China and across the Middle East. We haven't heard from Korea yet — but we're waiting,' he said. Although the project is expected to cost 1 trillion baht ($30 billion), Amornvivat said he sees no financing challenges. 'A high-speed railway linking China and the Pacific Ocean is also in the works, further strengthening our position as a strategic logistics hub,' he added. Thailand is also exploring the legalization of gambling and has designated Bangkok, Chonburi, Chiang Mai and Phuket as candidate sites for its first integrated entertainment complexes. These would feature casinos, theme parks, concert halls and even a Formula 1-grade street circuit. 'Since the announcement, we've seen strong interest from investors eager to work with the government,' Amornvivat said. 'We're confident these man-made tourist destinations will attract substantial investment and inject new energy into the tourism sector,' he added. 'These entertainment complexes are where the dreams of the Thai people can come true.'
Korea Herald
23-04-2025
- Business
- Korea Herald
Kakao Bank CEO pledges AI leadership at Thai fintech forum
All eyes on Thai central bank as Kakao Bank's consortium vies for virtual lender approval Kakao Bank CEO Yun Ho-young underscored the pivotal role of artificial intelligence in shaping the future of finance during a keynote speech at Money 20/20 Asia, positioning the digital lender as a front-runner in fintech innovation. Speaking Tuesday at one of Asia's largest fintech forums, Yun highlighted Kakao Bank's commitment to technological advancement, drawing on insights from his years at the helm of South Korea's largest internet-only bank. 'An AI-optimized user interface and user experience, backed by robust data capabilities, is no longer optional — it's essential for survival in this industry,' Yun said. 'Kakao Bank is fully committed to reshaping its UI and UX through artificial intelligence.' Held in Bangkok this year, Money 20/20 Asia draws senior executives from leading financial institutions and regulators across the region. The 2025 edition is expected to host around 4,000 attendees from 85 countries, including Singapore, Hong Kong and Australia. Yun was the sole Korean speaker invited to the event. He shared Kakao Bank's journey since its launch in 2017 by IT giant Kakao, highlighting its role in transforming Korea's digital banking landscape. The lender now serves 25 million users — the largest base among the country's three digital-only banks — with 19 million monthly active users. While noting that AI capabilities will be central to reshaping industry ecosystems, Yun stressed that technology alone would not redefine finance. 'Finance isn't a field that can be innovated by technology alone,' he said. 'Only institutions that combine proprietary data with a deeply user-centric mindset grounded in trust will emerge as dominant players.' Yun's visit to Thailand drew attention as it coincided with the Bank of Thailand's ongoing application process for new virtual banks — a race Kakao Bank has entered through its partnership with local financial group SCBX. Kakao Bank is part of the SCBX-led consortium, which also includes China's leading digital lender WeBank. The group is one of five contenders vying for three virtual banking licenses that the central bank is currently reviewing as part of Thailand's push to launch its first digital-only banks. According to local media reports, the SCBX consortium is a strong contender, alongside proposals led by state-owned Krungthai Bank — teamed with Gulf Group — and e-commerce firm Ascend Money. Once the banks are selected, they will have a year to prepare, with official operations expected to begin in mid-2026 under a phased rollout. Kakao Bank declined to comment on the selection, as an official announcement from local regulators is still pending. 'If we are granted a license, we plan to bring our digital finance expertise to Thailand, a market where Korean financial institutions have had relatively limited presence, and contribute to the growth of the country's fintech ecosystem,' a Kakao Bank official said. Kakao Bank's entry into Thailand's virtual banking sector would mark the return of a Korean bank to the country's financial landscape after 27 years, following the withdrawal of all Korean lenders in the aftermath of the 1997 Asian financial crisis.
