South Korea’s digital-only AI-driven lender KakaoBank reported its highest annual profit to date, with overseas investments now accounting for roughly one-fifth of earnings and turning its regional expansion into a measurable financial contributor.
KakaoBank recorded net profit of 480.3 billion won for 2025, up year over year and marking a new record for the internet-only bank, supported by growth in lending, fee income and platform-based services.
A notable share of that performance came from abroad. The bank booked about 93.3 billion won in gains tied to its investment in Indonesia’s digital bank Superbank, following the company’s market listing and valuation increase. The gain equates to more than 20% of KakaoBank’s net income on a pre-tax basis, making overseas operations a meaningful immediate contributor rather than a longer-term bet.
At the same time, the major bulk of neobank’s earnings remains domestic. Roughly 80% of profit continues to stem from core South Korean operations, including interest income from loans and a rising share of non-interest revenue such as payments, transfers and other app-based financial services. Non-interest income exceeded 1 trillion won for the first time, underscoring the strength of its digital platform model propelled by artificial intelligence.
Founded in 2016 and launched to the public in 2017, KakaoBank was created as an internet-only bank backed by Kakao Corp., operator of the KakaoTalk messaging app, and Korea Investment Holdings. The branchless lender built its business around mobile onboarding, low fees and simplified products, quickly attracting millions of users. Today, its customer base exceeds 25 million accounts, making it one of the country’s most widely used banking apps.
Furthermore, the digital lender quickly embraced the potential of AI technology, integrating artificial intelligence into core parts of its mobile banking experience. Now labelling itself as your “first AI bank”, Kakaobank has developed its own KakaoBank AI – a unified conversational AI platform, combining services such as natural‑language search, financial calculators, chat support, and intent‑based banking actions, that has become a central way users interact with their finances.
The bank’s strategy has increasingly focused on exporting that digital and tech-laden expertise. Rather than pursuing costly acquisitions, KakaoBank has opted for minority stakes and partnerships in Southeast Asia, with Superbank serving as its first major overseas test case. The recent gains suggest that approach is beginning to generate tangible returns.
With record earnings at home and profits now emerging from abroad, KakaoBank’s results show how a mobile-first banking model can scale beyond its domestic market while still relying on a solid local foundation.
