Young people and foreigners with limited credit histories will soon be able to obtain credit cards by simply paying a deposit, without needing to visit a bank. A new service will also be introduced that automatically finds better loan products as credit scores improve or incomes increase.
The Financial Services Commission announced on October 21 that it has designated four innovative financial services submitted by Shinhan Card, Woori Card, Bank Salad, and Moni. This brings the total number of designated innovative financial services to 1,168.
Shinhan Card and Woori Card will offer deposit-based credit card issuance services aimed at customers with insufficient financial transaction histories. Previously, customers without established credit scores had to go through complex procedures, including visiting bank branches and providing deposits as collateral. Now, they can obtain cards by depositing funds online without needing to visit a branch. Shinhan Card will target youth and foreigners, while Woori Card will focus on foreign residents in South Korea.
Bank Salad will introduce a low-interest loan pre-application service using MyData. When a user's credit score rises or income increases, the service will apply for a loan pre-approval based on previously granted permissions and inform the user of the results. Users can then select favorable loan options from the listed products and execute the loan directly with the financial institution.
Moni, an overseas remittance company, will increase the issuance limit for anonymous prepaid electronic payment instruments for foreign visitors from 500,000 won to 1 million won. Foreign tourists can obtain these prepaid instruments through a mobile app after verifying their passports and undergoing facial recognition, allowing them to use the instruments at domestic merchants.
The Financial Services Commission also accepted a request for regulatory improvements regarding the 'Pay Money Account Service' from Naver Financial and Hana Bank. This service allows Naver Pay users to store prepaid funds in Hana Bank accounts, which are automatically recharged with each payment.
* This article has been translated by AI.
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