Kakao Bank targets Mongolia in next global push www.koreaherald.com

South Korea’s internet-only lender Kakao Bank is stepping up its push into artificial intelligence, aiming to evolve into a personalized financial assistant while accelerating its overseas expansion, including entry into Mongolia.

Speaking at a press conference in Yeouido, Seoul, on Wednesday, CEO Yun Ho-young said the bank will leverage AI to deliver highly customized financial services and drive innovation beyond the domestic market.

Mongolia next in global push

Kakao Bank has officially named Mongolia as its next expansion target, following earlier moves into Indonesia and Thailand. The bank plans to export its proprietary credit evaluation model, Kakao Bank Score — which incorporates nonfinancial data — to local financial institutions.

Yun described the strategy as an extension of Kakao Bank’s “inclusive finance” model, adding that its footprint in Southeast Asia and Mongolia will serve as a springboard for broader global growth.

Executives from key partners, including Indonesia’s Superbank and Thailand-based Bank X, attended the event.

Superbank, Kakao Bank’s first overseas investment, has emerged as Indonesia’s largest digital bank by market capitalization. CEO Tigor M. Siahaan said the lender reached break-even in March 2025 and has since expanded to 6.4 million users.

He credited Kakao Bank’s model — including gamified features such as “Challenge” and “Lucky Pocket” — with boosting engagement in underserved segments, reaching around 1.2 million daily transactions.

In Thailand, Bank X is preparing to launch virtual banking services in early 2027. CEO Punnamas Vichitkulwongsa said the initiative targets structural gaps in the financial system, noting that a significant share of savings remains cash-based.

Bank X plans to adopt an AI-driven model to reduce costs and improve accessibility, while incorporating Kakao Bank’s user-friendly features to expand formal lending to freelancers and small business owners.

Kakao Bank is also expanding services for foreign users, targeting roughly 20 million potential customers — including foreign residents, short-term visitors and overseas Koreans — with AI-powered translation capabilities.

AI-native bank

Kakao Bank also outlined a broader transition toward becoming an “AI Native Bank,” leveraging its base of roughly 27 million users and 70 trillion won ($52 billion) in deposits.

The bank is expanding beyond core services such as transfers and deposits into payments and investment offerings, aiming to shift customer value from “sending and storing money” to “spending and growing wealth.”

New initiatives include customized debit cards, a second private-label credit card, a payment hub that integrates transaction data, and an investment tab for product comparison and portfolio management. The bank also plans to enter the retirement pension market.

Yun highlighted what he described as the “paradox of expansion,” where adding more features can reduce usability, stressing that AI will play a central role in proactively identifying and addressing user needs.

Kakao Bank is embedding AI across its platform and plans to introduce a dedicated AI tab. By combining user data with a finance-specific large language model, the bank aims to deliver hyper-personalized services.

Looking further ahead, Kakao Bank said it aims to lead the development of a won-based stablecoin and position itself as a global financial platform.

The bank targets 100 trillion won in assets and a return on equity of 15 percent by 2027, driven by balanced growth across its lending, platform and asset management businesses.

ch0221@heraldcorp.com

Mongolia Invites Bids for Major Steel Complex Project www.montsame.mn

The government will invite leading steel-producing countries, major enterprises, and investors to participate in the Steel Complex Project, sending out bidding documents and organizing the selection process by the 27th of next month.

The project involves the construction of a steel production complex with an annual capacity of at least one million tons in Orkhon soum of Darkhan-Uul aimag, to be developed under an industrial and technology park model. According to the preliminary feasibility study, total investment is estimated at USD 806 million.

As of the end of 2025, Mongolia imported one million tons of steel products worth USD 911 million, with demand projected to reach USD 1.6 billion by 2030. Once operational, the steel complex is expected to improve the balance of payments by approximately USD 350–400 million and reduce construction costs by around 10 percent.

During the Cabinet session on April 8, 2026, officials noted that Mongolia currently lacks enterprises with experience in building and operating large-scale steel plants using iron ore-based technology. The limited availability of specialized engineers and experts poses challenges to implementing the project domestically and increases potential technological and financial risks.

Therefore, the government considers it appropriate to implement the project in partnership with experienced international entities possessing capital, technology, and market access in the steel industry.

“Mongolia will have a steel plant capable of meeting at least 60–70 percent of its domestic demand. Once operational, the plant is expected to halve cement costs, reduce prices of key construction materials, lower import dependence, and create around 1,700 permanent jobs,” said Minister of Industry and Mineral Resources Damdinnyam Gongor.

PM Uchral Freezes 3,000 Civil Service Positions, Moves to Cut Workload www.montsame.mn

Prime Minister Uchral Nyam-Osor has instructed Cabinet members to freeze approximately 3,000 vacant positions in the public sector and refrain from making new appointments or personnel changes. This directive is formalized under a Government resolution titled “On Certain Measures to Optimize the Structure and Organization of State Institutions and Reduce the Workload of Civil Servants.”

Under the resolution, recruitment and internal transfers for around 3,000 vacant civil service positions will be suspended until a functional review of ministries and agencies is completed. The measure is expected to save an amount equivalent to staffing for roughly 26 ministries, with an estimated MNT 7.4 billion in salary expenditures.

The Prime Minister also announced that civil servants will be relieved from preparing 20–30 types of reports on a monthly, quarterly, semi-annual, and annual basis. Instead, the “Once-Only” principle will be implemented, meaning reports with overlapping content will be produced just once.

Although legislation stipulates that the government should not request information already in its possession from citizens, inter-agency data sharing remains insufficient. Officials have been tasked with ensuring proper implementation of this legal provision.

Furthermore, cabinet members and heads of ministries and agencies have been instructed to utilize the “eCabinet dashboard,” which supports data-driven decision-making based on big data, and to ensure access to necessary information. The Prime Minister called on the cabinet members to take the lead in adopting this system.

The resolution also introduces more flexible working arrangements, including improved time management, discouraging weekend work for civil servants, and allowing one day of remote work per week.

The Central Bank of Mongolia Sells Gold and Silver Bars as Souvenirs and Collectibles www.open.kg

The Treasury Fund of the Bank of Mongolia has announced the launch of sales of gold and silver bars that meet international standards. These bars can serve as gifts, souvenirs, or collectibles.

The refining process of these bars was carried out at facilities accredited by the London Bullion Market. The central bank confirmed the high quality and purity of these precious metals with a guarantee of traceability of their origin.

Gold bars have a fineness of 999.9 and are available in weights of 1, 5, 10, and 100 grams. Silver bars have a fineness of 999 and are offered in weight categories of 1 ounce, 100, 250, and 500 grams, as well as 1 kilogram.

Additional information about commemorative coins and bars available for sale can be found on the website erdenesiinsan.mn.

Government Cancels 2026 Inspection Plan to Ease Pressure on Businesses www.montsame.mn

The Government of Mongolia has cancelled a plan to conduct inspections at 9,376 sites belonging to citizens, businesses, and organizations under its unified 2026 plan, a decision made at today’s cabinet session.

Prime Minister Uchral Nyam-Osor emphasized that the government’s “Liberate” initiative is aimed at stimulating the economy during a challenging period, rather than increasing inspections. He noted that some businesses had been inspected up to 16 times in a single month, with around 50 percent of inspections resulting in fines. Criticizing this approach, he said the government should reduce administrative burdens and support business activities, while continuing to uphold its responsibility to protect public health and safety.

A total of 31 areas of sectoral inspections are currently overseen by 11 ministries, three agencies, and local administrative bodies, with 1,713 state inspectors operating nationwide. Within this framework, authorities monitor compliance with 112 laws, more than 3,600 regulations, and over 4,500 standards. Data from inspections conducted in 2024–2025 show that some organizations were inspected more than 30 times per year.

Draft Law on Recalling Members of Parliament Backed for Discussion www.montsame.mn

The Standing Committee on State Structure supported, with 66.7% of the vote, to discuss the draft law on amendments to the Law on the State Great Khural (Parliament) of Mongolia, initiated by the President of Mongolia, Khurelsukh Ukhnaa.

Members of the working group presented the draft law to the Standing Committee and answered questions. In the draft law, it is stipulated that:

If a member violates their oath of office,
If a member seriously or repeatedly violates the code of ethics,
If a court’s final ruling confirms that the member has committed a crime, then the matter must be openly discussed by the Parliamentary Subcommittee on Ethics and the plenary session of the Parliament, and the member may be recalled based on a decision of the Constitutional Court.
Additionally, the draft law requires that a Member of Parliament must attend at least 70% of the plenary meetings of the parliament and personally participate in at least 70% of the voting during those sessions.

The President considers that, while Members of Parliament must respect the mandate granted by the people, implementing constitutional provisions to recall members who violate the Constitution, commit crimes, or commit serious ethical breaches will be an important step toward strengthening parliamentary governance, increasing the accountability of political parties and coalitions, and ensuring equality in state operations and the rule of law.    

Moreover, it is expected that Members of Parliament will improve their participation and engagement in representing voters and in legislative activities. Measures to impose legal and ethical responsibility on members, especially recall procedures, will become more transparent, open, and effective, thereby increasing public trust in Parliament. It is also believed that enhancing the role and importance of the Constitutional Court and courts at all levels will create conditions for the consistent implementation of the rule of law and constitutional principles, according to the Office of the President of Mongolia.

Traffic Police step up action against underage surron riders www.gogo.mn

The Traffic Police Department is conducting inspections to prevent crimes and violations and to ensure road safety.

During the inspections, violations involving children under the age of 16 were identified and stopped. Officials are also working to ensure that citizens who have reached the age of 18 comply with the relevant rules and regulations.

The Traffic Management Center is regularly monitoring road traffic through surveillance cameras and taking immediate action when violations are detected. In this regard, parents and guardians are being warned to ensure their children’s safety and not allow those under the age of 16 to ride such vehicles.

Mongolia issues wildfire warning www.xinhuanet.com

Mongolia's National Agency for Meteorology and Environmental Monitoring issued a nationwide warning on Tuesday over the heightened risk of forest and steppe fires.

According to the weather monitoring agency, severe dry and windy conditions across most parts of the country have significantly increased the likelihood of wildfires this spring. The public has been urged to take precautionary measures to prevent potential fire outbreaks.

More than half of Mongolia's 21 provinces are currently experiencing extremely dry conditions.

As of Tuesday, firefighters are battling three active wildfires in Dornod and Khentii provinces, according to the National Emergency Management Agency.

Authorities have warned the public to avoid lighting open fires and to refrain from discarding cigarette butts on the ground during this period of heightened fire risk.

The new minister promises to promptly provide farmers with preferential loans www.open.kg

Iderbat Tsend, the Minister of Food, Agriculture, and Light Industry, began his activities in the Darkhan-Uul aimag, where issues related to preparations for the spring sowing and current problems were discussed.

“The difficulties faced by the agricultural sector have become evident. First of all, it is necessary to quickly resolve the issue of providing subsidies for 2025.

Secondly, access to preferential loans for enterprises remains limited. Due to drought in the Central and Selenge regions, many farmers are unable to obtain loans for spring planting as they cannot repay previous loans on time. This is a real problem that requires a solution.

Thirdly, it is also necessary to focus on issues of fuel supply and its regulation to find clear solutions,” noted Minister Iderbat.

Iderbat Tsend
The minister emphasized: “Farmers need to maintain a balance between wheat subsidies, access to subsidized fuel, and domestic production. In 2026, it is planned to sow 633 thousand hectares across the country. Supplies of necessary seeds, fertilizers, and plant protection products will be carried out in stages.” “An agreement has been reached for the supply of 10,000 tons of fuel for spring sowing at a price of 3,400 tugriks per liter, and the first stage of supplies has begun. The main goal is to ensure a smooth process for spring work and to create a reliable foundation for the autumn harvest,” he added.

“I am convinced that coordination of preparations, supplies, and decision-making is of particular importance this year, as the first day of spring is a key period for the autumn harvest,” he concluded.

Mongolia's New Cabinet Is Assembled. Now Comes the Hard Part www.capitalmarkets.mn

Mongolia's 35th government was sworn in at 2:24 in the morning on April 4 — an unglamorous hour that perhaps captured the mood. Prime Minister Uchral N., confirmed by parliament just days earlier as the country's third prime minister in nine months, presented a 19-minister cabinet drawn from three parties: 16 from the ruling MPP, two from the Hun Party, and one from the National Coalition, spanning 16 ministries. Uchral N. framed the moment plainly: the government walks in facing a "triple crisis" of rising fuel prices, commodity market volatility, and domestic political fragmentation.

10 Ministers Held Over, 9 New Faces: Reading the Cabinet for Policy Signals
The most telling number in this cabinet is ten — the ministers carried directly over from the Zandanshatar G. government that collapsed just days ago. In a country that has now cycled through three prime ministers in nine months, the continuity is deliberate. Uchral N. told parliament he prioritised speed and stability over a clean slate, noting that mid-crisis reshuffles generate legal disputes, transitional costs, and lost momentum. On that logic, the holdovers make sense. 

The Ministers That Matter to Investors
Minister of Industry and Mineral Resources — Damdinnyam G. (holdover): The most consequential holdover for markets, and the one investors should watch most closely. Damdinnyam G. is a mining man in the fullest sense and has spent his tenure pushing one of the most sweeping reform agendas the sector has seen. Since taking office, he has been driving amendments to the Minerals Law as the centrepiece of his reform agenda — one of five key pieces of legislation he has targeted for overhaul. On royalties, the agenda is specific: restructuring copper royalty progressive payments to international standards; setting appropriate rates on processed and beneficiated products to incentivise domestic value-added manufacturing; aligning royalties on co-occurring elements with global norms; and channelling a greater share directly to the aimags and communities where extraction actually takes place. The broader direction is a deliberate shift away from equity-heavy agreements toward royalty-based structures — a model he has pointed to explicitly via the recent Orano uranium deal. He remains the government's point man on the Oyu Tolgoi renegotiation with Rio Tinto, which carries a first-half 2026 deadline. His position on Mongolia's benefit share: 53%, non-negotiable.

Minister of Finance — Mendsaikhan Z. (new): A first-time minister with a domestic economics background and prior roles spanning public investment, energy sector administration, and presidential advisory work. He pledged continuity with outgoing Finance Minister Javkhlan B.'s policy framework — a signal of fiscal stability rather than reform ambition. The more immediately significant signal came from Uchral N. himself, who announced on the day the cabinet was formed that the government is shifting into full austerity mode without waiting for a budget amendment — cutting non-essential spending, freezing new procurement, and reducing civil service costs. For holders of Mongolian government bonds and those watching sovereign credit dynamics, that posture matters: it suggests the new government understands the budget's vulnerability — Mongolia faces a ₮3.3 trillion fiscal gap — and is not waiting for the next political crisis before acting.

Minister of Energy — Naidalaa B. (new, Hun Party): The most substantively interesting new appointment. Naidalaa B. is a former Hun Party chairman, and the energy portfolio going to the Hun Party is no accident. The party has been Mongolia's most consistent institutional voice for structural energy reform since joining the 2024 coalition, with energy listed as a top priority from the outset. The National Energy Reform Committee, established in 2024 under the coalition, drove the first real electricity tariff adjustments to reflect actual costs in years and initiated revisions to both the Law on Renewable Energy and the Law on Energy. The party's deputy leader Dorjkhand T. chaired the subcommittee on energy investments, tariff reform, and mega projects — signing frameworks with Envision Group and advancing talks with Saudi Arabia, the UAE, and Korea on renewable energy investment. Naidalaa B. inherits that entire reform architecture. His mandate spans the immediate power supply crisis, a renewable transition targeting 30% of installed capacity by 2030, and positioning Mongolia as a credible future energy exporter. The appointment signals that energy is being treated as a structural priority, not dispensed as a factional reward.

A New Cabinet, A Narrow Window
The governance questions are real and on the record. But the more pressing question for investors is not who raised concerns on confirmation night — it is what this cabinet does in the weeks ahead. The Oyu Tolgoi deadline is live. The budget needs to hold. The energy sector needs to deliver a winter without blackouts. A new investment law that has been promised at every economic forum for a decade is once again on the table — this time with the man who made that promise now sitting in the prime minister's chair. The cabinet is imperfect. The moment is not. Whether one can rise to meet the other is what investors should be watching.