Shares in KakaoBank Corp. soared as much as 17% to hit their highest level in nearly three years on Friday after the South Korean internet-only bank secured a virtual banking license in Thailand, highlighting its push for global expansion.
On Thursday, KakaoBank announced its joint venture with SCB X Public Company Ltd. (SCBX), a Thai fintech group, has been selected as one of three online bank operators by Thailand Ministry of Finance.
It marked the first return of a South Korean financial services firm into Thailand in 25 years.
KakaoBank’s share price spiked 17% to 32,850 won ($24) during intraday trading, its highest level since touching 33,100 won on Aug. 17, 2022.
It trimed its advance to close up 14.06% at 32,050 won, also its strongest finish since the same date.
The stock has hovered around 20,000 won since late 2022, trading at less than a quarter of its debut price on the Kospi in August 2021.
KakaoBank led the gains on the Kospi index that closed above the psychologically important 3,000 mark for the first time in three and a half yeares, up 1.48% to end at 3,021.84.
NO. 2 SHAREHOLDER IN THAI JOINT VENTURE
Thailand will become KakaoBank’s second oveseas market in Southeast Asia after Indonesia. In 2023, it acquired a 10% stake in PT Super Bank Indonesia, an online lender.
KakaoBank, a unit of South Korea’s mobile giant Kakao Corp., is expected to hold more than a 20% stake in the Thai joint venture with SCBX as the second largest shareholder.
Its operations are slated to begin in the second half of 2026 following a one-year preparation period.
Thailand has long been a hard nut to crack for foreign lenders as it had largely closed off its banking sector following the 1997-98 Asian financial crisis.
However, its recent move to adopt a virtual banking system has opened the door for KakaoBank to expand into Southeast Asia’s second largest economy.
By Yeonhee Kim
yhkim@hankyung.com
