Kakao Bank CEO Yun Ho-young presents on the theme "Beyond Banking, Into Every Life" at the Korea-Mongolia Business Forum held in Ulaanbaatar, Mongolia, on Thursday. [Kakao Bank]
Kakao Bank CEO Yun Ho-young presents on the theme "Beyond Banking, Into Every Life" at the Korea-Mongolia Business Forum held in Ulaanbaatar, Mongolia, on Thursday. [Kakao Bank]

Kakao Bank is accelerating its push into Mongolia's digital finance market, partnering with MCS Group — the country's largest conglomerate — to pursue a strategic investment in a local digital bank while jointly developing an AI-based alternative credit scoring model to expand financial access.

Kakao Bank said Friday that CEO Yun Ho-young attended the Korea-Mongolia Business Forum in Ulaanbaatar as part of South Korea's presidential economic delegation, where he presented the company's plans for digital finance cooperation.

Yun outlined how Kakao Bank has used technology to lower barriers of time, cost and creditworthiness in financial services, and shared the company's experience in inclusive finance through its alternative credit scoring model and AI technology. He also presented a vision for advancing digital financial innovation and expanding financial access through cooperation with Mongolia's financial market.

On the sidelines of the forum, Kakao Bank discussed its ongoing cooperation with MCS Group as well as broader digital finance collaboration with local financial institutions and government officials. The bank plans to strengthen Mongolia's digital competitiveness in finance by jointly developing an alternative credit scoring model with M Bank, MCS Group's digital banking subsidiary.

Kakao Bank also signed a term sheet with MCS Group for a strategic equity investment in M Bank. The bank plans to complete the necessary procedures, including a final agreement, and aims to close the stake acquisition in M Bank by year's end. It will also pursue strategic cooperation across multiple areas, including products and services, credit assessment enhancement and the development of a global digital banking network.

"Kakao Bank has practiced technology-driven inclusive finance by supplying a cumulative 16 trillion won ($10.6 billion) in loans to low- and mid-credit borrowers based on our proprietary alternative credit scoring model," Yun said. "Through strategic cooperation with MCS Group, we will enhance M Bank's credit assessment framework and build an AI-driven financial ecosystem together."

Yun is accompanying President Lee on a state visit to Mongolia running from Thursday through Saturday. Kakao Bank is the only bank among the companies participating in the presidential economic delegation.


won@heraldcorp.com