South Korean banks are intensifying their efforts to attract foreign customers, driven by changing demographics and globalization of financial services.
According to the Financial Supervisory Service on April 23, the number of foreign customers at domestic banks surpassed 8.13 million last year, marking a 4.8% increase from 7.76 million in 2023. This trend highlights the growing importance of foreign nationals as a market segment for South Korean financial institutions.
In recent years, South Korea has experienced a significant influx of foreign residents due to immigration for work, education, and marriage. This demographic shift has prompted banks to develop tailored services for this burgeoning customer base. As of February this year, the four major commercial banks—KB Kookmin, Shinhan, Hana, and Woori—reported having over 6 million foreign customers, up from 5.4 million at the end of 2022.
To cater to this diverse clientele, banks have been rolling out innovative products and services. For instance, Shinhan Bank launched the “SOL Global Check Card” in September last year, allowing foreigners to open accounts and receive check cards through non-face-to-face channels. By January this year, over 20 thousand cards had been issued with a usage rate of 65.4%, more than double that of Korean customers. Additionally, Shinhan Bank opened a foreigner-specialized branch in Gimhae, Gyeongsangnam-do offering financial services via video calls and plans to expand such branches gradually.
Hana Bank opened a foreigner-exclusive branch in Pyeongtaek in September last year equipped with an AI-based multilingual translation system supporting 38 languages allowing communication in native languages. Hana Bank also operates “Hana EZ,” a mobile banking service app optimized for overseas remittances.
The surge in foreign borrowers is another indicator of this trend; as of January this year, their number increased significantly to 79,524 compared to December 2022 figures.
Woori Bank is developing a one-stop support system for foreigners investing in domestic real estate covering everything from property information brokerage tax consultation among other services across its twelve specialized branches including Sunday branches Woori Global Desk Global Investment WON Center.
Meanwhile KB Kookmin Bank set launch “KB Quick Send,” low-fee overseas remittance service on March 30 available initially five countries—Nepal Vietnam Indonesia Thailand Philippines—with expansion planned up forty-eight countries first half-year allowing transfers equivalent $10 thousand per transaction offering benefits like fee exemptions preferential exchange rates through ‘KB WELCOME Account.’
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