KakaoBank Eyes Mongolia Expansion, Prepares Stablecoin Plan

KakaoBank said it is pushing to enter Mongolia after expanding into Indonesia and Thailand, as it looks to diversify revenue through overseas business. The company also said it plans to secure a license to issue stablecoins after the enactment of the Digital Asset Basic Act, aiming to take an early lead in that market.

At a news conference on April 8 at the Fairmont Ambassador Seoul in Yeouido, KakaoBank CEO Yoon Ho-young said the company plans to export its credit-scoring system, called “KakaoBank Score,” to Mongolian financial institutions. The model uses nonfinancial data, he said.

“Mongolia is a market where the credit evaluation system has not yet been sufficiently advanced,” Yoon said. “It is meaningful to apply KakaoBank’s inclusive finance capabilities accumulated in Korea to overseas markets.”

Mongolia would be KakaoBank’s third overseas business after Indonesia and Thailand. KakaoBank is also preparing to start operations in the first quarter of next year for “BankX,” an internet bank set up as a joint venture with Thailand’s SCBX Group. KakaoBank said it plans to introduce key products locally, including its “26-week savings” and “group account,” and to lead development of the mobile app to deliver a user experience similar to its service in Korea.

KakaoBank said its competitiveness in “easy finance” is driving broader cooperation with overseas financial firms, saying its services can be effective in Southeast Asian markets where informal lending is high or financial infrastructure is limited.

Yoon said local interest was strong in its overdraft loan product, adding that working with local partners, rather than entering directly, can reduce risk.

KakaoBank also said it plans to obtain a stablecoin issuance license after the Digital Asset Basic Act is enacted and to participate across issuance and distribution. If needed, it will consider mergers and acquisitions across payments and investment, the company said.

“The goal is to make a won-denominated stablecoin as convenient to use as withdrawing funds from an account,” Yoon said. “If there is a suitable company, we will actively look for M&A opportunities.”