As the number of foreigners staying in South Korea rises, competition among banks to secure foreign customers is heating up. In the past, financial services for foreigners focused on currency exchange or overseas remittances. Recently, transaction areas have been rapidly expanding to include payroll transfers, savings and time deposits, credit loans and wealth management. Banks are also strengthening dedicated products and specialised sales networks, viewing foreigners as a separate customer segment.

As of Aug. 24, the combined number of foreign customers counted by major banks was estimated at about 7.9 million, the financial sector said. Foreign deposit balances were also tallied at more than 27 trillion won.

As more foreigners stay long term for work and study in South Korea, their demand for financial services is also growing. In the banking sector, a clearer shift is emerging to view foreign customers as long-term financial consumers rather than simple users of exchange and remittance services.

FOUR MAJOR BANKS TARGET FOREIGNERS WITH SAVINGS, LOANS AND PRIVATE BANKING

Banks are taking more concrete steps. KB Kookmin Bank has unified branding of products and services for foreign customers this year under "Global Star" and has rolled out savings products and credit loans. On Aug. 20, it also launched "KB Global Star Supporters," in which foreign customers directly experience financial services and offer suggestions for improvement.

Shinhan Bank added Sunday branches tailored to foreign customers in Busan and Daegu this year, expanding the total to four. It also raised the maximum limit of "SOL Global Loan," a credit loan for foreign workers launched last year, to 50 million won from 20 million won this year and added preferential-rate items.

Hana Bank upgraded its foreigner-only financial platform "Hana EZ" this year. It expanded non-face-to-face 생활 and financial services such as changing customer information, paying utility bills and issuing various certificates. It also increased the number of languages supported for multilingual chat counselling to 16 from 12. It opened the "Incheon Hana Global Culture Bank" at the Namdong Industrial Complex in Incheon and is providing foreign residents with education on preventing financial fraud, digital finance practice and basic financial education.

Woori Bank opened the "Jeju Global PB Branch" in Jeju for foreign customers and began offering wealth management, foreign exchange, overseas remittances and tax counselling. In May, it fully launched the "Nol World Card," a prepaid card for foreign tourists, and began issuing it on site at Incheon International Airport. In June, it also expanded services for foreigners, such as joining hands with Trade and Development Bank of Mongolia and KT to broaden combined finance and telecommunications services for Mongolian workers and students.

KAKAOBANK TO JOIN IN FOURTH QUARTER WITH SERVICES FOR FOREIGNERS

Online-only banks are also joining the competition. KakaoBank, which has expanded its customer base mainly among South Koreans, is moving to secure a new customer segment by extending services to foreigners.

KakaoBank reaffirmed its plan in its second-quarter earnings conference call to launch financial services for foreigners in the fourth quarter. It plans to provide key services such as account opening and overseas remittances and apply multilingual support to its artificial intelligence-based services. It also said it plans to roll out a dedicated debit card for foreigners living in South Korea within the year.

In this way, competition among banks for foreign customers is expanding not only to secure customer numbers but also to widen transaction scope. Financial services for foreigners are becoming more diverse, going beyond remittances and payroll transfers to include savings products, cards, loans and wealth management.

A banking industry official said, "The purpose of expanding services for foreign customers is to resolve inconveniences foreigners experience while using domestic financial services." The official added, "From the bank's perspective, such services are likely to continue expanding because they can secure foreigners as a new customer segment."