South Korea’s leading internet-only bank, Kakao Bank, has received official approval from Thailand’s Ministry of Finance to launch a virtual bank, marking the first entry of a Korean bank into the Thai market in a quarter century. The license is part of Thailand’s broader effort to modernize its financial system by introducing digital-only banking services.
The approval was granted to a consortium led by Thailand’s fintech powerhouse SCBX Public Company Ltd., which includes Kakao Bank and Tencent-backed WeBank. The group is one of three selected operators under Thailand’s new virtual banking framework to increase competition and improve access to financial services.
The move follows its entry into Indonesia in 2023, where it acquired a 10% stake in PT Super Bank Indonesia. With Thailand becoming its second overseas market in the region, Kakao Bank aims to leverage its digital banking expertise to build a strong regional footprint.
CEO Yoon Ho-young described the virtual bank license as a key milestone in Kakao Bank’s global ambitions. He emphasized that the project not only opens doors to new markets but also offers a platform to demonstrate South Korea’s advanced digital finance capabilities. Kakao Bank also views the venture as a potential launchpad for other Korean financial institutions and tech firms seeking to enter Thailand.
The consortium, led by SCBX and including Kakao Bank and We Bank, was one of three selected by the Thai Ministry of Finance. Kakao Bank is expected to hold over a 20% stake in the new Thai entity, making it the second-largest shareholder.
According to the Bank of Thailand, selected operators must set up corporate entities by Q3 2025 and undergo a one-year preparatory period. Full-scale operations are scheduled to begin in the second half of 2026. The central bank expects the new virtual banks to offer purely digital services, enhance user experience, and boost competition through innovation and better pricing.
News of the license had an immediate impact on the stock market. Kakao Bank shares surged by as much as 17% in intraday trading, reaching their highest level in nearly three years. The stock closed up 14.06% at 32,050 won, leading gains on the Kospi index, which surpassed the 3,000 mark for the first time since 2020.
Thailand’s push for virtual banking aims to modernize its financial landscape by enabling banks to operate fully online without the need for physical branches. The model closely mirrors South Korea’s internet-only banks, which have gained popularity for offering convenient, tech-driven services.
For Kakao Bank, the approval represents not only a strategic win but also a rare entry into Thailand’s tightly controlled banking sector. Since the 1997-98 Asian financial crisis, the country has limited foreign banking activity. However, the virtual banking initiative has opened new doors, allowing Kakao Bank to strengthen its footprint in Southeast Asia’s second-largest economy.
