South Korea’s three internet-only banks—KakaoBank, K-Bank and Toss Bank—each posted record profits last year, with Toss Bank turning a net profit for the first time since its launch.
The strong earnings mark a turning point for the industry, which began in 2017 when KakaoBank and K-Bank received their licenses, and are now seen to have entered full-scale growth.
Now, S. Korea’s internet-only banks are shifting their focus beyond domestic growth, setting their sights on global markets. With all three—KakaoBank, K-Bank, and Toss Bank—ranking among the world’s top 15 digital lenders this year, their presence on the international stage is gaining momentum.
On Apr. 23, Thai news outlet The Nation reported that the Bank of Thailand had selected a consortium comprising KakaoBank, China’s WeBank, and Thai financial holding company SCBX as one of the country’s new digital banking licensees.
If Thailand’s Ministry of Finance grants final approval in the first half of the year, the consortium could launch operations as early as 2025. KakaoBank is expected to hold more than a 20% stake in the new bank, making it the second-largest shareholder after SCBX.
The groundwork for this expansion was laid in June 2023, when KakaoBank signed a business agreement with SCBX to jointly pursue a digital banking license in Thailand.
WeBank joined the effort the following Mar. 2024, and the consortium submitted its application last September. While the license still requires final approval, industry observers say the consortium has already cleared the most significant hurdle in the process.
This is not KakaoBank’s first move overseas. In 2023, the company made its international debut by acquiring a stake in Indonesia’s Superbank, a local internet-only lender.
Unlike the investment-driven approach in Indonesia, KakaoBank is taking a more collaborative route in Thailand, partnering with a firm that has deep local market knowledge. The shift reflects a flexible strategy tailored to each country’s regulatory and business environment.
Toss Bank and K-Bank are also preparing for global expansion. At a press briefing on Apr. 16, Toss Bank CEO Rhee Eun-mi said the company plans to enter the international market within the next three to five years.
She explained that the first step could take the form of equity investments, joint ventures, or a banking-as-a-service model that would allow third parties to use Toss Bank’s proprietary system.
K-Bank, too, has explored global opportunities. In 2018, it partnered with Mongolia’s MCS Group to share its digital banking expertise—a move that signaled early ambitions to extend its footprint abroad.
These efforts come as competition in the S. Korean market is expected to intensify.
The Financial Services Commission is currently reviewing applications for a fourth internet-only bank license, with four consortia—SoSo Bank, Podo Bank, Korea Soho Bank, and AMZ Bank—having submitted preliminary bids. The prospect of new entrants is prompting established players to look outward as they brace for fiercer rivalry at home.
At the same time, S. Korea’s digital banks see a chance to take the expertise they’ve cultivated domestically and apply it in regions where internet banking remains underdeveloped.
“Southeast Asia, with its tech-savvy and mobile-first younger population, is emerging as a key battleground for digital banks worldwide,” said a fintech industry insider.
Globally, S. Korean internet banks are gaining recognition for their performance and innovation. In its latest ranking of the world’s top 100 digital banks, global research firm TAB Insights placed KakaoBank in fourth position—behind Brazil’s Nubank, the Netherlands’ ING Bank, and China’s WeBank.
While those top three operate in far larger markets, KakaoBank scored highly in categories such as product diversity and profitability. Toss Bank followed at ninth, and K-Bank came in at 14th, putting all three S. Korean firms firmly in the global spotlight.
