Empty Promises of Non-Face-to-Face?..."It's Too Difficult to Unlock Limit-Restricted Accounts"

Accounts Opened Remotely Require Branch Visit to Lift Limits

Bank Counter Reference Image

[Asia Economy Reporter Gong Byung-sun] Housewife Lee Hye-yeon (39, pseudonym) recently faced a difficult situation when she tried to open a savings account for her child. She attempted to transfer money from an account opened non-face-to-face, but was blocked by the limit. When she inquired at the bank, she was told that non-face-to-face accounts have transfer limits, allowing only 300,000 KRW per day online.

Lee said, "To lift the limit, I have to visit a branch, and as a housewife who is not employed, I need to have at least three months of utility bill transaction history with that bank to meet the conditions," adding, "If I had known this, I wouldn't have opened the account non-face-to-face."

As digital and untact transaction culture spreads, banks are focusing on non-face-to-face services, but customers often struggle because they cannot lift the limits on accounts opened non-face-to-face.

This is because only limited accounts with restrictions are created when opening accounts non-face-to-face, and to lift the limits, visiting a branch is mandatory. Critics point out that the limits on these restricted accounts are too low, and even visiting a branch, it is difficult to raise the limits due to unrealistic criteria.

According to the banking sector on the 10th, the daily online transfer and withdrawal limit for limited accounts at the four major commercial banks (KB Kookmin, Shinhan, Hana, Woori) is 300,000 KRW. Even when visiting a bank counter, the limit is only up to 1,000,000 KRW per day. Office worker Kang Min-kwon (29, pseudonym) said, "I needed 1,000,000 KRW as emergency funds, but since only 300,000 KRW was allowed, I had to proceed over four days," adding, "I don't have time to go to the bank, so I don't plan to use non-face-to-face accounts."

Office worker Kim Min-hong (31, pseudonym) said, "I opened an account non-face-to-face due to COVID-19, but I ended up having to go to the bank," adding, "There were many people at the bank, so I was worried."

Inconvenience for Students and Housewives... "Paying Monthly Rent Means Going to the Bank Every Month"

Students and housewives who do not receive salaries complain that it is difficult to lift the limits. They use accounts for various purposes, but the criteria to lift limits are tailored to office workers, causing dissatisfaction. To lift the limits, documents such as employment certificates, salary statements, and utility bill payment receipts are required.

On an online community, there was a post saying, "I tried to pay monthly rent with youth allowance, but I couldn't lift the limit on the non-face-to-face account," and "I visit the bank every month to pay rent."

According to the 'Enforcement Rules on Prevention of Telecommunications Financial Fraud and Reporting Rewards,' if the ratio of fraud-used accounts to total accounts exceeds 0.4% semi-annually, the authorities must be submitted with an improvement plan.

Also, accounts with withdrawal and transfer limits set at 1,000,000 KRW per day per customer are excluded from the count of fraud-used accounts. Banks are likely to avoid being subject to management if they set transfer and withdrawal limits at 1,000,000 KRW or less.

An official from the Financial Supervisory Service said, "Banks are not forced to require face-to-face procedures," adding, "Many internet-only banks are already lifting limits non-face-to-face." Internet-only banks such as KakaoBank and K Bank allow changing the limits of new accounts non-face-to-face.

An official from a commercial bank said, "As internet banks strengthen their non-face-to-face services, commercial banks are also considering fully non-face-to-face limited accounts," adding, "Nevertheless, protecting customers is a priority, so we will do our best to prevent damage caused by accounts used for fraud such as mule accounts."

This content was produced with the assistance of AI translation services.