KakaoBank said on the 22nd that it signed a joint venture agreement (JVA) with a local financial holding company to establish a virtual bank in Thailand.
According to KakaoBank, the two companies plan to set up a joint venture under this agreement.
The virtual bank being introduced by the Bank of Thailand (BOT) provides financial services only through digital platforms without offline branches, similar to Korea's internet-only banks. Thailand is rapidly undergoing digital transformation, with smartphone penetration exceeding 90% and the real-time payment system "PromptPay" becoming widespread.
KakaoBank plans to initially acquire a 10% equity stake in the joint venture. It plans to gradually increase its stake to 24.5% to cement its position as the second-largest shareholder.
Chief Executive Officer Yun Ho-young of KakaoBank said, "Entering Thailand is a symbolic achievement as a Korean bank returns to the Thai market for the first time in 25 years since the Asian financial crisis," adding, "Based on the excellence of Korea's digital finance, we will build a successful virtual bank model and lay the groundwork for pioneering global markets."