KakaoBank targets Mongolia as next market in global expansion

KakaoBank CEO Yun Ho-young speaks during a press conference at a hotel in Seoul, Wednesday. Courtesy of KakaoBank

KakaoBank is turning to Mongolia as the next step in its global strategy, building on the success of its expansion in Indonesia and Thailand, CEO Yun Ho-young said Wednesday.

Speaking at a press conference in Seoul, Yun said the move is significant because it exports the bank's proven model of inclusive finance beyond Korea.

"Mongolia represents a meaningful step in bringing KakaoBank's inclusive finance model, proven in Korea, to the global stage. We will use our achievements in Indonesia and Thailand as a springboard to expand further into global markets," he said.

The country's largest internet-only bank plans to transfer its proprietary credit scoring system "KakaoBank Score" to a Mongolian financial institution, using nonfinancial data to improve credit assessment.

The strategy in Mongolia builds on the bank's expansion in the Southeast Asian market.

Indonesia's Superbank — KakaoBank's first overseas investment — debuted on the Indonesia Stock Exchange in December 2025 and has since emerged as a fast-growing digital bank in the country.

In Thailand, KakaoBank is preparing to launch virtual banking services in the first half of next year through Bank X, a joint venture with SCB X Public Company Limited (SCBX).

Yun said KakaoBank is also targeting foreign residents in Korea, whose demand for financial services is growing.

"Global expansion does not begin in distant markets, but with foreign users already around us. Long-term residents, visiting foreigners and overseas Koreans, totaling more than 20 million people, are all potential customers," he said.

The bank plans to roll out services for foreign residents this year, including demand deposit accounts and debit cards, while launching artificial intelligence (AI)-driven real-time translation tools on its mobile app to reduce language barriers.

Separately, the CEO outlined the bank's ambition to become an "AI-native bank," positioning AI at the core of its growth strategy.

He said the bank aims to transform its app into an AI-powered financial assistant, allowing users to access services through conversation rather than navigating complex menus.

"As financial apps add more features, users often struggle to find what they need, which leads to a phenomenon we call the 'paradox of expansion,'" Yun said. "Our goal is for AI to proactively identify and solve customers' needs."

By combining app-only data from its 27 million users with a finance-specialized large language model, the bank aims to deliver highly personalized services.

For example, users will be able to ask the AI assistant to analyze their annual spending and suggest ways to reduce expenses, while the system will also proactively offer tailored financial guidance based on payment data.

"Rather than searching through complex menus, users will be able to easily make requests through a chatbot system, and AI will swiftly understand their needs and recommend the most relevant functions," the CEO said.