[1mm Financial Talk] Fierce Free Currency Exchange Battle Among Banks... KakaoBank and Woori Bank Also Preparing to Join

As banks respond to the increased demand for overseas travel by continuously launching foreign currency exchange services, KakaoBank, the leading internet-only bank, and Woori Bank, a major commercial bank, are also set to release related services within this month. Industry experts suggest that due to fierce competition and the resulting leveling up of services across companies, these banks' offerings are likely to be equipped with considerable convenience and benefits.

According to the financial sector on the 7th, KakaoBank plans to introduce a new foreign currency exchange service within this month. Earlier, in March, KakaoBank signed a business agreement with the fintech company 'Travelwallet' to expand its foreign currency services and has been preparing to enter the market.

On the 17th, the won/dollar exchange rate was trading in the 1380 won range, down from the previous day, in the foreign exchange market. The photo shows the exchange rate being traded at a currency exchange booth on Myeongdong Street, Jung-gu, Seoul, on the same day. Photo by Jo Yongjun jun21@

Woori Bank is also expected to launch related products this month in collaboration with Woori Card. The foreign currency deposits will offer a 100% exchange rate preferential treatment, and the check cards are reported to include benefits such as waiving fees for overseas merchant usage and overseas ATM (Automated Teller Machine) withdrawals. Among the four major commercial banks (KB Kookmin, Shinhan, Hana, and Woori), Woori Bank is the only one without its own foreign currency exchange service, operating only the 'Travelwallet Woori Card' through its affiliate Woori Card in partnership with Travelwallet.

The reason both companies are preparing foreign currency exchange services is interpreted as an effort not to fall behind in the recently intensified service competition. Previously, Hana Bank secured 4 million customers by launching the 'Travelog' service, prompting other banks such as Toss Bank (foreign currency accounts), Shinhan Bank (Sol Travel), and KB Kookmin Bank (Travelers) to enter the market to attract customers.

As they enter the market dominated by Hana Bank, latecomers are enhancing convenience and benefits. For example, Shinhan Bank's Sol Travel check card allows free use of the airport lounge (The Lounge) once each in the first and second half of the year if the previous month's usage requirements are met. Among the foreign currency exchange services currently offered by commercial banks, Shinhan Bank is the only one providing airport lounge services as a benefit. The two banks preparing to launch new products are reportedly deeply considering their strategies. A bank official said, "Since each company is competitively releasing related products, differentiation is not easy," adding, "I understand that the relevant departments are deeply contemplating this."

A financial sector official stated, "As competition intensifies, it has become difficult for each service to find distinguishing features while benchmarking each other," and added, "For new entrants, they will likely respond with user convenience and attractive additional services."

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