Kakao Bank CEO Yun Ho-young recently visited Mongolia as a key member of President Lee Jae Myung’s business delegation. This significant participation marks Kakao Bank as the sole commercial bank representing South Korea in the delegation, underscoring its growing international influence, the bank announced Friday.
During his visit, Yun delivered a compelling address at the Korea-Mongolia Business Forum in Ulaanbaatar on Thursday. His speech, titled “Beyond Banking, Into Every Life,” captivated attendees by outlining Kakao Bank’s innovative approach to finance.
Yun highlighted how Korea’s leading internet-only bank has spearheaded innovation within the domestic banking sector through cutting-edge technology. He detailed how Kakao Bank has successfully lowered barriers to credit access, significantly reducing both the time and cost associated with utilizing essential financial services. Furthermore, he showcased the bank’s extensive experience in advancing financial inclusion, notably through the development and application of alternative credit-scoring models powered by artificial intelligence.
Looking ahead, Yun presented an ambitious vision for future collaboration with Mongolia’s dynamic financial market. This partnership aims to drive digital finance innovation and expand crucial access to financial services across the region.
Adding to its strategic engagements, Kakao Bank confirmed on Thursday the signing of a term sheet for a strategic share investment in M Bank with MCS Group, one of Mongolia’s largest and most influential conglomerates. Both parties anticipate finalizing the investment by the end of this year, following the completion of all necessary procedures and the signing of the definitive contract.
This agreement signifies a major step forward for a partnership initially announced earlier this year, when Kakao Bank strategically identified Mongolia as a key overseas market for expansion. Beyond the direct investment in M Bank, which stands as Mongolia’s pioneering digital bank, Kakao Bank and MCS Group are actively preparing for a broad spectrum of collaborative initiatives. These include the crucial development of an alternative credit-scoring model specifically tailored to the unique characteristics of the Mongolian market.
The two strategic partners are committed to cooperating across several vital areas: alternative credit scoring methodologies, the co-creation of innovative products and services, advanced credit assessment frameworks, and the establishment of a robust global digital banking network.
In further efforts to foster wider cooperation, Kakao Bank also engaged with various local financial institutions and high-ranking government officials to explore broader opportunities in digital finance collaboration.
“Mongolia’s vibrant young population, combined with its robust digital infrastructure, presents immense growth potential for AI-driven financial services,” stated Yun. “Through our strategic partnership with MCS Group, our goal is to significantly advance M Bank’s existing credit-scoring system and simultaneously develop an innovative alternative credit-assessment model utilizing non-financial data. This collaborative effort will cultivate a thriving AI finance ecosystem, fostering mutual growth and prosperity for both countries.”
jwc
