[Current State of Foreigner K-Finance]③"The Essence Is Ultimately Communication... Lending and Financial Education Must Go Hand-in-Hand"

Interview with Hana Bank's Foreign Exchange Customer Marketing Department

Time to Overcome Language Barriers and Raise Financial Literacy
The More Diverse Financial Services Become,
the More Education Must Follow

Editor's NoteThe number of foreign nationals residing long-term in Korea has surpassed 2 million, intensifying competition among banks to attract them as core customers. While banks used to view this group as a niche market, the ongoing population decline and the exodus of young people from commercial banks have led to both seniors and long-term foreign residents being recognized as key customer segments. In light of these changes, we examine, in a three-part series, how banks are restructuring their business strategies, whether anything is being overlooked in the process, and the realities and challenges of the foreigner financial market.

"The criteria by which foreign customers choose a bank are actually quite close to home. At any branch, being able to handle the financial work they need comfortably and confidently—this is the essence and the real competitive edge. The same is true for mobile banking. Rather than endlessly adding flashy or complex services, we aim to focus on the basics."

Sangbong Kim, Team Leader of Hana Bank Foreign Exchange Customer Marketing Department (from left), Huilyoung Eom, Team Leader of Personal Foreign Exchange Marketing Team, and Hyeryoung Park, Manager of Foreign Customer Marketing Team, are posing after an interview with The Asia Business Daily. 2026.05.18 Photo by Dongjoo Yoon

The insights from frontline staff deeply involved in foreign customer banking proved to be surprisingly clear. The three interviewees from Hana Bank’s Foreign Exchange Customer Marketing Department unanimously emphasized that the true essence of banking services desired by foreigners is ‘convenience and comfort.’

On May 18, at Hana Bank’s Euljiro headquarters in Jung-gu, Seoul, we spoke with Kim Sangbong, Team Leader of the Foreign Customer Marketing Team; Eom Hwiyoung, Team Leader of the Personal Foreign Exchange Marketing Team; and Park Hyeryung, Manager of the Foreign Customer Marketing Team, about the current state and future direction of financial services for foreigners. Kim, a veteran, has been exclusively handling foreign customer banking since the former Hana Bank era in 2012. Eom and Park joined the department last July after working at the Guro and Songdo branches, both of which serve large concentrations of foreign customers.

Increase in Long-Term Foreign Residents... ‘Financial Literacy’ Education Must Come First

They noted that the growing number of long-term foreign residents has made the need for financial literacy more urgent. Financial literacy refers to consumers’ ability to understand and utilize financial and economic concepts in order to make sound decisions. Kim explained, "Many foreign workers in Korea are from Southeast Asian countries, and even though the adult account ownership rate in their home countries has increased, it is still low. For instance, many people from mountainous regions such as Nepal have never visited a bank in their lives, resulting in significant differences in awareness about financial matters."

Kim continued, "When a foreign worker arrives in Korea, the first things they need are a payroll account and a debit card, but even understanding these concepts can be difficult. Their awareness of financial security is also lacking, so we provide thorough guidance on the basics, such as ‘Do not lend your bank account to others,’ ‘You must close your account when leaving Korea,’ and ‘Never share your password.’"

Increasingly stringent compliance risks are another variable. Kim stated, "As the nationalities of foreigners living in Korea diversify, regulations on countries with relatively weak systems—such as Vietnam and Myanmar—have been tightened internationally since COVID-19. As a result, foreigners must now prepare far more documents to conduct financial work, such as opening accounts, but there are practical limits to how much information we can provide in advance."

Language barriers also remain a significant hurdle for many foreigners. Eom commented, "No matter how important interest rates and other terms become, communication is ultimately what matters most. When customers can speak their native language, they are much more likely to feel comfortable and open up to the bank." Hana Bank has greatly expanded its communication channels for foreigners, adding translation functions for 16 languages within its mobile app and installing AI-driven multilingual counseling services at each branch. At the headquarters’ Foreign Exchange Customer Marketing Department alone, 16 foreign employees from 10 different countries currently provide branch support work. Hana Bank also plans to hire about five more foreign staff for the headquarters within this year.

Sangbong Kim, Team Leader of Foreign Exchange Customer Marketing Department at Hana Bank, is being interviewed by The Asia Business Daily. 2026.05.18 Photo by Dongju Yoon

Beyond Remittance to Lending... “Financial Education Must Go Hand-in-Hand to Prevent Delinquencies”

Among banking services for foreigners, the overseas remittance market has become fiercely competitive since the introduction of small-sum overseas remittance businesses following the 2018 amendment of the Foreign Exchange Transactions Act, with fintech companies also entering the field. Hana Bank has maintained its market leadership by establishing direct one-on-one payment networks with local banks. To meet the increased demand for mobile banking after COVID-19, the bank introduced a direct transfer function within the mobile app, allowing real-time remittances 24/7, which has further strengthened its market dominance. Kim explained, "Overseas remittances involve multiple steps, so errors are frequent, and if intermediary information is incorrect, transfers are often returned. To reduce this, we have established direct partnerships with local banks in 10 countries and plan to expand this going forward."

They emphasized that as the foreigner lending market grows in the financial sector, financial education must follow to ensure market stability. Kim noted, "Many foreign workers are at the start of their careers, and those from countries with less developed financial systems tend to apply for loans without fully understanding them. Despite the growing volume of loans, risk education for these customers remains woefully inadequate."

Hana Bank’s credit loan product for foreigners, ‘Hana The Easy Loan,’ accounts for this environment by capping loan limits at less than 10 million won to control risk. Interest rates are similar to those offered to Korean nationals, at around 6%. Kim explained, "Loans for foreigners are typically used as emergency funds in cases such as unexpected family illnesses. For initial settlement costs upon arriving in Korea, we plan to support customers by offering preferential interest rates if they repay the loan through a partner bank in their home country." Hana Bank has currently partnered with a Sri Lankan bank and is working to expand to Mongolia and Nepal.

Kim pointed out, "In countries sending unskilled workers to Korea, the level of financial services is often comparable to Korea in the 1970s or 1980s, so the gap in financial awareness cannot be closed with just one or two short-term educational sessions." He stressed, "Especially for lending, financial education must go hand-in-hand with the process from the outset, so that borrowers understand the weight of their obligations."

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