Banks rush out translation, forex services as Korea's foreign population hits 2.65 million

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Banks rush out translation, forex services as Korea's foreign population hits 2.65 million

Published: 07 May. 2025, 07:00

Audio report: written by reporters, read by AI

Notices for foreign visitors are displayed in Myeong-dong, central Seoul, on April 28. [YONHAP]

Competition among Korea’s financial institutions is heating up as they target the country’s growing population of foreign residents, which is currently 2.65 million.

As foreign consumers in Korea spend more and demand better financial services, banks and card companies are ramping up efforts to attract them with customized products and services.

KB Kookmin Card said on April 29 that the number of foreign residents using its debit cards rose 46 percent at the end of last year from 2019 while transaction volume jumped 75 percent over the same period.

On average, foreign customers made 22.8 transactions a month last year, spending 516,000 won ($360) — both figures around 20 percent higher than five years earlier. The surge was most notable among foreign nationals in their 20s, with card issuance climbing 39 percent in the past three years.

“A growing appetite among foreigners for financial services in Korea means we must analyze their consumption trends and offer more customized products and services,” a KB Kookmin Card official said.

Annual credit-card spending by foreign nationals has also climbed. The amount exceeded 56 trillion won in 2023, up 65 percent from 2019, according to the Korea Immigration Service and the Immigration Policy Research Institute.

Foreigners accounted for about 6.9 percent of Korea’s total individual credit-card usage, a share that analysts expect to surpass 10 percent by the 2030s. Annual credit-card spending per foreign resident averaged approximately 5.15 million won, about 73 percent of the average spending by Korean nationals.

The foreign population in Korea has surged as the country grapples with low birthrates and labor shortages. The number of foreign residents rose from 490,000 in 2000 — 1 percent of the total population — to 2.65 million, or 5 percent, by the end of 2024, according to the Ministry of Justice.

Automated teller machines for Korea's four major banks are lined on a street in Seoul on April 27. [YONHAP]

New foreign customers at Korea’s five major banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — doubled from 184,000 at the end of 2020 to 377,000 by the end of 2023. The cumulative number of foreign clients at the country’s four major banks surpassed 6 million in March.

As foreign residents emerge as a lucrative new market, banks are moving quickly to serve them. Shinhan Bank is offering full foreign exchange fee waivers for foreign customers transferring salary income overseas until May 31. Earlier this month, it also launched a mobile web platform supporting 16 languages — a first among Korean banks — and plans to ease credit-card issuance standards for foreign customers. Shinhan is also preparing to roll out a new unsecured loan product tailored to foreigners in the third quarter.

KB Kookmin Bank launched its new international transfer service, KB Quick Send, on April 30. The service charges a flat fee of 5,000 won per transaction and promises next-business-day delivery in most cases.

Hana Bank introduced a real-time translation service for foreign clients at branch counters starting April 18, using a proprietary chat system that supports voice and text consultations. It currently offers service in 13 languages and plans to expand to more than 40.

Woori Bank recently expanded its Global Desk service that opens counters exclusively for foreign customers to 12 branches nationwide by adding four new locations.

“Efforts to enhance foreigners’ access to financial services will not only improve financial inclusion, but also diversify and expand the customer base for financial institutions,” said Hong Yong-ki, a researcher at the Korea Institute of Finance. “It is critical to address practical challenges such as difficulties in credit assessment for foreign clients and continuously build out institutional infrastructure.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KYUNG-HEE [[email protected]]