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| KakaoBank CEO Yun Ho-young, left, and SCBX CEO Arthid Nanthawithaya pose after signing a partnership on forming a consortium for a virtual bank license in Thailand at SCB Park Plaza in Bangkok, Thursday. Courtesy of KakaoBank |
By Lee Min-hyung
Financial companies here are in a rush to expand their presence in Southeast Asia amid the toughening rivalry that is prevalent in the domestic market.
KakaoBank, the nation's leading internet-only bank, has recently signed a partnership with SCBX of Thailand. The latter is one of the country's leading financial groups, rapidly expanding its investment in the area of financial technology there.
Under the alliance, both companies decided to establish a consortium for a virtual bank license in Thailand. They will cooperate in not only the early phase of the consortium's operation but also after receiving the license, according to a statement from the Korean lender. The virtual bank refers to a kind of internet-only bank that does not operate any sales offices offline.
KakaoBank is expected to acquire at least 20 percent of shares in the consortium and become the second-largest shareholder.
Both sides have shared a common view on the growth potential of the Southeast Asian market and agreed to jointly develop diverse financial services. KakaoBank hopes to leverage its mobile financial technology and expertise in the mobile platform business, in its bid to tap deeper into Thailand and other Southeast Asian markets.
"KakaoBank is pleased to introduce its mobile banking expertise in the global market," KakaoBank CEO Yun Ho-young said. "KakaoBank is determined to build the future of finance and contribute to the advancement of financial technology in Thailand together with SCBX."
SCBX CEO Arthid Nanthawithaya said, "The strategic partnership will open up opportunities for Thai customers, particularly the underserved, to conveniently access a wide range of financial products and services at a greater accessibility through technology."
Other Korean non-banking players also identify Southeast Asia as their next major growth area.
Hanwha Investment & Securities decided Thursday to take over a controlling stake in Indonesia's Ciptadana Securities and Ciptadana Asset Management. The country's Lippo Group operates the affiliates. The Korean securities firm will acquire an 80-percent stake in Ciptadana Capital.
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| The logo of Hanwha Investment & Securities is seen at its headquarters in Seoul. Yonhap |
The deal will be finalized as early as the end of 2023 after receiving approvals from the financial authorities of both countries.
Hanwha aims to expand its footing in Indonesia's lucrative digital finance sector after acquiring the companies.
"Indonesia is the world's fourth-most populous nation and the median age of its population is 30 years, so we have focused on the huge growth potential of digital finance there," Hahn Doo-hee, president of Hanwha Investment & Securities, said.
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