KakaoBank, SCBX to open internet bank in Thailand

South Korea's KakaoBank Corp. said on Sunday it partnered with Thailand’s financial giant SCBX to establish a local virtual bank.   

The new venture, modeled on South Korea’s digital-only banking framework, will provide banking services exclusively through digital platforms, bypassing the need for physical branches.

The Bank of Thailand closed its application window for virtual bank licenses in September.

Virtual banks in Thailand must operate within a year of receiving licenses. Kakaobank, with SCBX’s support, submitted its license application in September.

SCBX, a diversified financial group, oversees a network of 11 subsidiaries, including Siam Commercial Bank, one of Thailand's largest lenders.

Executives from both firms discussed plans to increase financial accessibility and strengthen the digital system in Thailand.

The joint effort aims to establish a cutting-edge virtual bank that enhances the competitive landscape of Thailand’s banking sector and supports financial inclusion for underserved populations.

Write to Eui-Jin Jeong at justjin@hankyung.com