Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
KakaoBank CEO joins president's state visit to Mongolia
Industry Minister Kim Jung-kwan, left, and KakaoBank CEO Yun Ho-young, second from left, pose with MCS Holdings CEO Myagmarjav Ganbyamba, third from left, and Mongolian Deputy Prime Minister Togmid Dorjkhand during a signing ceremony between KakaoBank and MCS Holdings during the Korea-Mongolia Business Forum in Ulaanbaatar, Thursday. Courtesy of KakaoBank
By Lee Hyo-jin
KakaoBank CEO Yun Ho-young attended the Korea-Mongolia Business Forum in Ulaanbaatar held on the sidelines of President Lee Jae Myung's state visit to Mongolia, the lender said Friday.
Yun was the only CEO of a Korean commercial bank included in the president's business delegation during the three-day trip.
At the forum held the previous day, Yun delivered a presentation titled "Beyond Banking, Into Every Life," introducing KakaoBank's digital banking model and its use of alternative credit scoring and artificial intelligence (AI) to broaden access to financial services.
He said Korea's largest internet-only lender has lowered barriers to customers by reducing time, cost and credit constraints, citing its alternative credit assessment model as a key tool for extending loans to underserved borrowers.
On the sidelines of the forum, KakaoBank signed a term sheet with Mongolia's MCS Holdings for a strategic investment in the latter's digital banking subsidiary, M Bank.
KakaoBank plans to complete the investment in the Mongolian bank within this year after signing a final agreement and obtaining regulatory approvals.
The two companies also agreed to collaborate on financial products and services to enhance M Bank's credit assessment system, and jointly develop an alternative credit scoring model using nonfinancial data.
KakaoBank said the ongoing partnership is expected to strengthen Mongolia's digital financial ecosystem and expand access to financial services.
The deal marks the latest step in KakaoBank's overseas expansion strategy, with Mongolia emerging as one of its key target markets.
"Korea has spent the past decade building a more accessible digital financial ecosystem following the introduction of internet-only banks," Yun said.
"KakaoBank has also used its alternative credit assessment model to extend a cumulative 16 trillion won ($10 billion) in loans to middle- and low-credit borrowers, showing how technology can expand access to financial services."
"Mongolia's young population and advanced digital infrastructure make it a promising market for AI-powered financial services. Through our strategic partnership with MCS Holdings, we hope to help build an AI-driven financial ecosystem that benefits both countries," the CEO added.