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As the number of foreign residents in South Korea rapidly grows, banks are increasingly targeting them as a new core customer segment. With foreign residents staying longer in Korea and using a wider range of financial services, banks are moving in earnest to secure their position as the primary bank for these customers, who show strong potential to become long-term clients. As a result, banks are expanding their business targeting foreign customers beyond simple currency exchange and overseas remittances, rolling out dedicated platforms, customer engagement programs, and a mix of financial and non-financial services.

According to the financial industry on the 23rd, KB Kookmin Bank held a launch ceremony for its "KB Global Star Supporters" program on the 20th, in which foreign customers can suggest inconveniences they've experienced using financial services and offer ideas for improvement. This marks the first time Kookmin Bank has launched a customer engagement program exclusively for foreign customers. This year, the bank has been expanding related services, integrating its products and services for foreign customers under the "Global Star" brand and launching savings and loan products.

Hana Bank, which holds a strength in foreign exchange, has also been expanding its business foundation targeting foreign customers. This month, Hana Bank opened a "Foreign Exchange and Capital Transaction Center" at Place1 in Samseong-dong, Gangnam-gu, Seoul, strengthening financial services related to foreign investment, including foreign direct investment (FDI). Earlier this year, the bank also upgraded its dedicated app for foreign customers, "Hana EZ," turning it into a platform that offers not only financial services like overseas remittances and foreign exchange bank designation, but also non-financial services such as foreign resident registration certificates, flight information lookup, and utility bill payments.

Behind banks' push to expand business targeting foreign customers is the rapid growth of the foreign resident population. According to Ministry of Justice immigration statistics, the number of foreign residents in Korea stood at 2.78 million at the end of last year, up 5.0% (130,000 people) from 2.65 million the previous year. Their share of the total population also rose from 5.18% to 5.44% over the same period. Foreign residents' spending has also been growing. According to a survey conducted last year by KB Kookmin Card, the number of foreign customers using debit cards rose 46% in 2024 compared to 2019, while spending amounts rose 75%. Average monthly transactions and spending per person rose to 22.8 transactions and 516,000 won, up from 3.8 transactions and 84,000 won, respectively.

The growing potential for foreign customers to become long-term clients is another key factor. Last year, the number of long-term resident foreigners reached 2.16 million, accounting for 4.22% of the total population — up 120,000 from the previous year. Compared to 2021, when long-term resident foreigners numbered 1.57 million and made up just 3.04% of the population, the figure has grown by 590,000 in just four years. The total number of foreign residents in Korea is projected to surpass 3 million by 2030.

While short-term foreign residents primarily use banks for services like currency exchange and overseas remittances, longer stays tend to bring more diverse financial needs — starting with opening a salary account and expanding to credit and debit cards, savings and deposit accounts, and loans. Since a customer's first banking relationship is likely to become their primary bank, banks are working hard to attract foreign customers by expanding into non-financial services covering broader aspects of daily life. A banking industry official said, "The number of foreign customers staying in Korea long-term is growing rapidly," adding, "As major banks establish dedicated departments for foreign customers, related products and services will continue to expand."

                                                                                                             Chae Jong-il