Kakao Bank CEO Yun Ho-young visited Mongolia this week as part of President Lee Jae Myung’s business delegation, making Kakao Bank the only commercial bank represented in the group, the bank said Friday.
On Thursday, Yun attended the Korea-Mongol Business Forum in Ulaanbaatar and delivered an address titled “Beyond Banking, Into Every Life.”
In his speech, Yun highlighted how Korea’s leading internet-only bank has driven innovation in the domestic banking industry through technology, lowering barriers to credit and reducing the time and cost of accessing financial services. He shared the bank’s experience in advancing financial inclusion through alternative credit-scoring models and artificial intelligence.
Yun outlined a vision for collaboration with Mongolia’s financial market to promote digital finance innovation and expand access to financial services.
Also on Thursday, Kakao Bank said it signed a term sheet for strategic share investment in M Bank with MCS Group, one of Mongolia’s largest conglomerates. The lender added that the two sides plan to complete the investment by the end of this year after completing the necessary procedures, including signing the final contract.
The agreement advances a partnership announced earlier this year, when Kakao Bank selected Mongolia as its next overseas market. In addition to its strategic investment in M Bank, Mongolia’s first digital bank, Kakao Bank and MCS Group are preparing to collaborate on a range of initiatives, including developing an alternative credit-scoring model tailored to the Mongolian market.
The two sides plan to cooperate on alternative credit scoring, products and services, advanced credit assessment and a global digital banking network.
Kakao Bank also met local financial institutions and government officials to discuss broader digital-finance cooperation.
“Mongolia’s young population and strong digital infrastructure give it significant growth potential in AI-driven financial services,” Yun said. “Through our strategic partnership with MCS Group, we plan to advance M Bank’s credit-scoring system and develop an alternative credit-assessment model using nonfinancial data, creating an AI finance ecosystem in which the two countries can grow together.”
jwc@heraldcorp.com
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