KakaoBank has introduced financial services for foreign residents in South Korea, allowing them to open accounts, make payments, and conduct international remittances. This initiative aims to reduce language barriers and the need for in-person visits to bank branches, thereby attracting foreign customers and expanding its deposit base.
On October 12, KakaoBank held a press event at the Novotel Ambassador Seoul Dongdaemun to announce the launch of its foreign financial services.
The services are available to foreign residents aged 19 and older who possess a foreign identification card and a mobile phone registered in their name. Using a chatbot-based registration process and public MyData, customers can open an account in about five minutes without visiting a branch.
The app features AI translation, supporting English, Chinese, and Vietnamese for its interface and chat consultations. Next year, the number of supported languages will increase to seven. The bank also offers benefits equivalent to those for domestic customers, including waived transfer and ATM fees, as well as cashback on debit card purchases.
As the number of foreign residents in South Korea rises, competition among banks to attract these customers has intensified. According to the Ministry of Justice, there were approximately 2.78 million foreign residents in the country at the end of last year, with 2.16 million being long-term residents who stay for over 90 days for studies, work, or settlement. This demographic represents a steady customer base with ongoing financial needs for salary deposits, living expenses, and remittances.
Toss Bank has been offering online account opening and debit card issuance services for foreigners since 2022. K-Bank is also preparing to launch related services by the end of this year. KakaoBank emphasizes its focus on inclusive finance rather than immediate profit generation. The bank plans to expand its product offerings next year to include savings accounts and loan comparison services.
Bae Jeong-ho, head of KakaoBank's foreign customer camp, stated, "We expect that increased usage of our services by foreign customers will naturally lead to a rise in daily active users and deposit balances. We have not set specific customer numbers or profit targets yet."
* This article has been translated by AI.
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