KB Kookmin Bank has launched a service through its mobile banking app, KB Star Banking, that allows users to make QR payments at merchants in China. The service connects directly to China’s national payment network so customers can pay without a separate local payment app or additional personal data registration. It also provides exchange rate benefits.

KB Kookmin Bank said on Wednesday it introduced an overseas payment service linked to NUCC (Net Union Clearing Corporation), a Chinese national payment infrastructure institution. It is the first case among South Korean financial companies to directly link to China’s national payment network.

Bank of Communications and local payment operators such as WeChat Pay also took part in building the service. A key feature is linking China’s yuan-based QR payment system with KB Star Banking.

Customers can pay by scanning a QR code presented by a merchant in China using KB Star Banking. They do not need to install a local payment app or go through steps such as entering passport or credit card information again.

Kookmin Bank explained that directly linking to the national payment network lowered payment fees. It applies a 100 percent preferential condition to the exchange rate at the time of the transaction.

The KB Star Banking overseas payment service can also be used in Japan, Indonesia, Vietnam, Thailand, Laos, Taiwan, Guam, Saipan and Hawaii.

Kookmin Bank will run an event for customers who use the service for payments in China through Dec. 21 to coincide with the improvement. During the period, customers who pay in China using KB Star Banking overseas payments will receive 10 percent of the amount spent immediately as Star Points.

Cashback is capped at 10,000 won per transaction and applies up to 5 times during the event period.

A KB Kookmin Bank official said, "We improved the service to reduce inconveniences customers may experience during the payment process while traveling overseas, and to help them use it more conveniently and without 부담." The official added, "We will continue to enhance overseas payment benefits and convenience that customers can feel in various countries."