Kim Seung-hwan, foreign exchange product owner at Toss Bank, speaks during a press conference held in central Seoul Thursday.
Toss Bank has introduced a commission-free foreign exchange service in a move to enhance its non-interest profit.
The internet-only bank said Thursday that the service enables users to exchange 17 currencies in real-time through its account, which allows customers to buy and sell currencies free of charge.
The currencies available include the U.S. dollar, Japanese yen and euro.
The maximum monthly limit for currency exchanges is $300,000.
The fundamental problem with foreign exchange services launched by domestic financial companies has been the commission fee, said Toss Bank in a statement. “Customers had to check in with various financial companies to be able to exchange currency with a better commission fee,” as different commission rates are charged to customers based on their transactions with different banks.
Toss Bank aims to “tear down the boundary between the Korean won and foreign currencies by offering a zero commission rate for currency exchange,” said Kim Seung-hwan, foreign exchange product owner at Toss Bank, in a press conference held in central Seoul Thursday.
The bank said that it has “established a sustainable business model” on the currency exchange service based on its “sustainable profit structure.”
Foreign exchange commission fees charged at local banks vary from as low as 1.5 percent to as high as 13 percent.
Holders of Toss Bank foreign exchange account will be able to make payments or withdrawals overseas using the bank’s debit card.
BY JIN MIN-JI [[email protected]]
