SEOUL, South Korea – Facing a saturated domestic market, South Korean banks are aggressively pursuing the growing population of foreign residents to secure new growth engines. With approximately 2.7 million foreign nationals residing in the country, this demographic is no longer a niche market but a critical customer segment poised to shape the future of the banking industry. Tailored financial services, once a convenience, have become a necessity to overcome language barriers and complex banking procedures that have historically challenged foreign residents.
Major Banks Leverage Digital Platforms for Enhanced Accessibility
Leading commercial banks, including KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH Nonghyup Bank, and Industrial Bank of Korea (IBK), are significantly improving convenience for foreign customers by strengthening digital overseas remittance services and expanding multilingual support.
KB Kookmin Bank has launched 'KB Quick Send,' an exclusive overseas remittance service for foreign customers. Available through the KB Star Banking app, this service simplifies the remittance process by leveraging Visa's global network. Its competitive fee of just KRW 5,000 and rapid processing time of up to one business day have garnered significant positive feedback. Transfers are capped at USD 10,000 per transaction, with initial service available in five countries with large Korean expat populations – Nepal, Vietnam, Indonesia, Thailand, and the Philippines – and plans to expand to up to 48 countries by the first half of the year.
Shinhan Bank is actively marketing to foreign customers, offering 100% exchange rate preferential treatment for salary remittances. Customers using 'Foreign Worker Remittance' via Shinhan Financial Group's mobile apps, 'Shinhan SOL Bank' or 'Shinhan SOL Global,' can receive exchange rate benefits up to USD 5,000 (approximately KRW 7.18 million) once a month, valid until the end of this year. Furthermore, the Financial Services Commission recognized Shinhan's specialized small-sum overseas remittance accounts and cards for foreign workers as an innovative financial service. The bank has also revamped its mobile web channel, becoming the first in the financial sector to provide guidance in 16 languages, actively working to remove language barriers.
Hana Bank has designated foreign residents as a core target customer group for the year and implemented a proprietary real-time chat system with interpretation capabilities across its nationwide branches. Customers can consult with staff via voice or text, with the initial 13 supported languages set to expand significantly to over 40. This demonstrates Hana Bank's commitment to addressing the diverse linguistic needs of foreign customers and maximizing financial service accessibility.
Woori Bank has enhanced its dedicated foreign customer app, 'WooriWON Global,' to allow non-face-to-face account opening. By the first half of the year, the bank plans to introduce a 'Job Matching Service' in collaboration with employment platform Incruit, offering customized job information to foreign customers. This strategy extends beyond financial services to provide daily life support for foreign residents settling in Korea. Woori Bank has also expanded its dedicated foreign customer counters, 'Global Desks,' from 8 to 12 branches, adding Cheonan Financial Center, Incheon Port Financial Center, Yeonsu-dong Branch, and Dongpyeongtaek Branch. These new branches offer services specialized in languages and cultures, including Uzbek/Russian (Cheonan, Yeonsu-dong), Vietnamese (Incheon Port), and English (Dongpyeongtaek). Its customer center also provides 12 language services, including Nepali, a first among banks.
NH Nonghyup Bank offers preferential accounts for foreign customers, including benefits like interbank transfer and ATM fee waivers. It also operates a 'Foreign Worker Insurance Premium Account' to facilitate payment of mandatory foreign worker insurance premiums, such as departure maturity insurance, return expense insurance, and accident insurance, contributing to the financial stability of foreign workers.
Industrial Bank of Korea (IBK) has expanded its 'Ansan Foreigner Financial Center' in Ansan, Gyeonggi Province, an area with the largest foreign population. Operating as a dedicated foreign customer branch since 2008, the center is open on weekdays and Sundays. Staff fluent in six languages provide tailored financial services, including product explanations, account opening, and i-One Bank Global app installation support. The expansion has enabled a real-time interpretation system supporting a total of 38 languages, allowing foreign customers to feel as comfortable as if they were banking in their home country.
Regional Banks Leverage Local Strengths with 'Visiting Services'
Regional banks, facing dwindling domestic customer bases due to population decline and regional economic stagnation, are also eyeing foreign customers as a new growth engine. They are focusing on expanding customer touchpoints through specialized branches and mobile financial services, particularly in areas with high concentrations of foreign workers.
Busan Bank recently established a specialized branch for foreign customers at its 'Gimhae Financial Center' in Gimhae, Gyeongnam. It features dedicated foreign customer counters, digital desks capable of interpreting 7 languages, an AI translation system supporting 17 languages, dedicated tablets for foreign customers, and foreign supporters, significantly enhancing financial accessibility and convenience for foreign customers.
Gyeongnam Bank operates a Sunday mobile bank for foreign workers in the Geoje area. It provides on-site financial services for foreign customers who find it difficult to visit banks and has adopted AI interpreters for smooth consultations. This is seen as an effort to resolve daily inconveniences for foreign workers beyond simple financial services.
Jeonbuk Bank has demonstrated an innovative approach by introducing the 'Bravo Korea Moving Lounge,' the first mobile lounge exclusively for foreigners in Korea. As part of Jeonbuk Bank's 'Bravo Korea' foreign-specific brand strategy, its goal is to provide daily life-oriented financial services to foreign residents. The first vehicle offers consultation-focused services in the Busan and Gyeongsang regions, while the second is a mobile-specialized model emphasizing concierge services. The third vehicle, affiliated with the Seoul Dongdaemun Foreigner Business Center, operates primarily in areas with high concentrations of foreign commercial and residential activity. This illustrates Jeonbuk Bank's proactive commitment to bringing financial services directly to foreign customers.
Gwangju Bank has opened a Foreigner Financial Center in the Gwangju and Jeonnam regions, providing real-time interpretation services supporting 38 languages. Notably, the bank has directly assigned foreign staff from four countries, including Indonesia, Nepal, and Mongolia, to its counters, enabling customized consultations based on linguistic and cultural understanding. It also offers a variety of foreign-exclusive accounts, cards, and loan products to meet the financial needs of foreign customers.
The Competitive Edge: South Korean Banks Pioneering New Avenues
The aggressive push by South Korean banks to attract foreign customers is driven by several intertwined factors:
Firstly, low growth and saturated domestic markets have made it challenging for banks to secure profitability amid prolonged low-interest rates. Furthermore, an aging population and declining productive workforce will inevitably lead to a shrinking domestic customer base in the long term. In this context, the steadily increasing number of foreign residents is perceived as a new customer segment and a vital growth engine.
Secondly, there is an increasing financial need among foreign customers. Foreign residents in Korea require a diverse range of financial services, including salary transfers, overseas remittances, deposits, insurance, and loans. The consistent demand for remittances to their home countries provides a stable source of remittance fee income for banks. As their residency lengthens and economic activities become more robust, there's also a growing need for more complex financial services, such as loans for housing purchases and asset management.
Thirdly, advancements in digital technology have provided the infrastructure to easily offer financial services to foreign customers through mobile banking apps, AI-powered interpretation systems, and non-face-to-face account opening services. While language barriers and limitations of in-person services previously hindered foreign customer acquisition, digital technology has significantly alleviated these constraints.
Fourthly, changes in government policy toward foreigners and enhanced financial inclusion are playing a role. The government now views foreign residents not merely as labor but as integral 'members of society.' Consequently, various policies supporting foreigners' settlement in Korea are being promoted, with improved access to financial services being a key objective. Banks are aligning with these government policies to fulfill their social responsibility while simultaneously creating new business opportunities.
Finally, intensified competition among banks in the domestic market is forcing them to constantly seek new revenue streams. The foreign customer market is viewed as a 'blue ocean' with significant untapped potential, leading each bank to compete with differentiated services and strategies to gain an early foothold. This ultimately benefits foreign customers by providing them with improved financial services.
The concerted efforts of the banking sector are expected to mark a significant turning point, not merely in attracting foreign customers, but in reflecting Korea's multicultural society and establishing a more inclusive financial system. It remains to be seen which innovative services and strategies will capture the hearts of foreign customers in the future.
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