Bank of Korea signs AI partnership with Kakao

Yoon Myun-shik, left, senior deputy governor at the Bank of Korea, poses after signing a digital partnership with Kakao Enterprise CEO Baek Sang-yeop, at the headquarters of the central bank in Seoul, Tuesday. Courtesy of Bank of Korea

By Lee Min-hyung

The Bank of Korea (BOK) has signed a partnership with Kakao Enterprise to utilize the central bank's artificial intelligence (AI) capabilities, the BOK said Tuesday.

This is the first time that the central bank has clinched a digital partnership with an external organization, as part of its 2030 growth initiative centered on digital transformation through embracing emerging technologies with a focus on AI.

"We are going to establish a research team aimed at embracing state-of-the-art technologies ― such as big data and AI ― in the latter half of this year, and the team will partner with the Kakao subsidiary to enhance the BOK's AI capacity," an official from the central bank said.

Kakao Enterprise is the AI research subsidiary of Kakao, the operator of the nation's largest mobile messaging service, Kakao Talk. The Kakao affiliate also plans to help the central bank draw up policies with the help of the emerging technology.

The BOK and Kakao plan to carry out joint AI research for the central bank to take advantage of the technology when devising policies and making economic forecasts.

The central bank said it named Kakao Enterprise as its partner due to the firm's leadership in establishing the nation's AI ecosystem.

"Kakao Enterprise has expressed the biggest interest in the BOK's digital innovation, and the company holds numerous patents on AI-related technologies," the central bank said. The company's engineers also displayed a strong determination to take on the task, the BOK added.

It is a rare case for the central bank to sign a partnership with a private organization. But marking its 70th anniversary earlier this month, the BOK pledged to make drastic changes with the focus on digital innovation. The decision reflected on the global banking paradigm shift with the rise of digital currencies and non-face-to-face transactions.

Under the drive, the central bank will create what it calls its digital innovation division headed by a deputy governor-level official.

Kakao Enterprise will soon send a number of AI engineers to initiate the central bank's digital vision. The number of engineers is yet to be confirmed.

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