Hana Financial Group, South Korea’s third-largest financial holding company, targets foreign individual customers in the country with a dedicated team amid the declining population.
Hana Bank, the group’s flagship unit, set up a task force, which consists of staff from 16 departments such as those for foreign exchange support and new digital businesses, to systemically manage foreign retail customers and launch new services for them, according to industry sources on Monday.
The holding company plans to establish an organization, in which the lender’s affiliates including Hana Card Co. and Hana Insurance Co. participate, for foreigners in the country.
The move came as more foreigners lived in South Korea while the country’s population continued to shrink. The number of foreign residents in Asia’s fourth-largest economy rose 23.2% to 2.5 million in 2023 from 2020, but the total population fell 1% to 51.3 million during the period, according to the Ministry of Justice.
INCREASING REMITTANCES THROUGH KOREA’S TOP FX PLAYER
Foreigners’ financial transactions rapidly grew. The number of foreigners who opened accounts at Hana Bank reached 3.1 million as of end-August. The number rose by about 110,000 from 3 million at the end of 2023.
Their remittances through Hana Bank, South Korea’s largest foreign exchange market player, also quickly increased.
The overseas money transfers by foreigners totaled $2.2 billion through its mobile banking app in the first eight months of the year, nearly tripling $760 million in the entire 2021.
The number of remittances also more than trebled to 2.2 million from 652,000 during the period on the course to top 3 million for the first time in 2024.
“The direct remittance service has become more popular as it allows customers to transfer money through the app to the home countries of many foreign workers here such as Sri Lanka, Nepal, Thailand, Vietnam and Mongolia,” said a Hana Bank official.
Its foreign exchange department at the headquarters in Seoul has 15 employees, who speak 11 languages and are dedicated to providing services to workers from other countries.
OFFLINE SERVICES
The lender has been operating 16 branches on Sundays since 2003 in cities where many foreigners live and work as it is difficult for them to visit banks on weekdays.
Hana Bank also introduced a real-time interpretation service based on artificial intelligence for 38 languages such as English, Thai and Malay at those branches.
The bank is expanding such services to international students and families with foreigners.
It provides foreign students in the country with customized financial education not only on its services such as opening accounts, remittances and smartphone baking, but also on the prevention of financial crimes including phishing.
For multicultural families, the lender plans to expand the Hana Culture Bank, its community branches for foreigners with free medical clinics, libraries and other facilities.
Write to Jae-Won Park at [email protected]
Jongwoo Cheon edited this article.
