KakaoBank signs MOU with Mongolia's largest telecom operator
KakaoBank CEO Yun Ho-young, right, and MCS Investment CEO Myagmarjav Ganbyamba pose after signing a memorandum of understanding at the Korean company's headquarters in Pangyo, Gyeonggi Province, April 3. Courtesy of KakaoBank
KakaoBank has signed a memorandum of understanding (MOU) with Mongolia’s MCS Group, taking a step toward expanding its footprint in Central Asia, the company said Thursday.
MCS Group is one of Mongolia’s leading conglomerates, with subsidiaries spanning telecommunications, finance and engineering. It also operates M Bank, the country’s only digital bank.
The agreement, signed April 3 at KakaoBank’s headquarters in Pangyo, Gyeonggi Province, details plans for a strategic equity investment in M Bank, as well as the joint development of alternative credit-scoring models tailored to local financial conditions.
Speaking at a press conference, Wednesday, KakaoBank CEO Yun Ho-young described the partnership as “a meaningful step in bringing KakaoBank’s inclusive finance model to the global stage,” following the company’s expansion into Indonesia and Thailand.
Mongolia possesses strong growth potential for digital finance, supported by high internet penetration and state-led efforts to expand financial infrastructure, KakaoBank said. At the same time, its young population, with a median age of 31.5, means many consumers are without sufficient credit history, visibly pushing demand for alternative credit assessment models.
Against this backdrop, Korea’s largest internet-only bank is set to introduce its proprietary “KakaoBank Score” system through the partnership, which has supported over 15 trillion won ($10.1 billion) in lending to underserved and thin-file borrowers.
“By bringing our digital banking technology and risk management capabilities to Mongolia, we aim to improve financial access and drive innovation in the local market,” Yun said. “We also expect this partnership to lay the groundwork for expansion into Central Asia.”