Korean savings banks are intensifying efforts to enter the foreigner finance market amid a rising number of foreign residents. Traditionally dominated by commercial banks, this sector is seeing tailored products from savings banks. Industry officials highlight initiatives to improve financial access for migrant workers.
The number of foreign nationals in Korea has risen steadily from 1.96 million in 2021 to around 2.83 million as of October last year, accounting for more than 5 percent of the total population. This growth has boosted their financial activities, including spending, payments, and cross-border remittances. In response, savings banks are introducing tailored products for international customers, such as specialized savings accounts, installment plans, payment cards, and loan programs.
These banks aim to address gaps in financial access that migrant workers often face, leveraging their expertise in mid-rate loans for low- and mid-credit borrowers and strong regional networks to serve the expanding foreign resident segment.
Welcome Savings Bank stands out as the most aggressive in this market. It runs a dedicated lending program for international workers with E-9 nonprofessional employment visas, providing credit to a group that struggles with traditional services.
The bank also launched a debit card exclusively for global customers last year to handle rising demands for payments and remittances. Additionally, it partnered with cross-border payments fintech SentBe to offer a brokerage service for deposit products tailored to foreign nationals. This service simplifies account opening and subscriptions for non-Koreans and was recently designated an innovative financial service by the Financial Services Commission.
OK Savings Bank provides unsecured credit loans to E-9 visa holders aged 18 to 45. Applications are evaluated based on factors like salary transfer records, length of stay, and employment type, which observers say enhances access for migrant workers.
An official from the savings bank industry stated, “Providing credit loans to foreign nationals requires more than simply launching a product. Lenders must secure trained counseling staff and conduct thorough screening procedures, including verification of visa status, income documentation and proof of residence.” The official added, “As we accumulate data and operational experience, we are gradually refining and advancing the business.”
These initiatives reflect efforts to bridge financial service gaps for foreigners, with industry watchers viewing them positively.
