[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 previously viewed this as a niche market, the decline in population and the migration of young people away from commercial banks have led to foreigners, alongside seniors, being recognized as a key customer base. Against this backdrop of environmental change, we examine in three parts how banking business models are being reorganized, whether anything is being overlooked in the process, and the current state and challenges of the foreign customer financial market.

"The criteria by which foreign customers choose a bank are actually quite straightforward. Wherever they go, being able to carry out their desired financial work with ease and peace of mind—that's the core and the true competitive edge. The same applies to the mobile environment. Instead of pursuing grand and complex services, we strive to focus on the fundamentals."

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 assessment from frontline banking professionals who deal directly with foreign customers was unexpectedly clear. The three members of Hana Bank's Foreign Exchange Customer Marketing Department unanimously emphasized that what foreigners truly want from banking services is "convenience and comfort."

On the 18th at Hana Bank's Euljiro head office in Jung-gu, Seoul, we met with Sangbong Kim, Team Leader of the Domestic and Foreign Customer Marketing Team, Team Leader Huilyoung Eom, and Manager Hyeryoung Park to discuss the present state and directions for improvement in the foreign customer financial environment. Kim, a veteran, has been exclusively handling foreign customer financial business since 2012, during the former Hana Bank days. Eom and Park joined the department in July last year after working at branches with high concentrations of foreign customers, such as Guro branch in Seoul and Songdo branch in Incheon.

Increase in Long-term Foreign Residents... Financial Literacy Education Is Essential

They noted that the recent increase in long-term foreign residents has made the need for financial literacy more urgent than ever. Financial literacy refers to the ability of financial consumers to make rational decisions based on their understanding and practical use of financial and economic concepts. Kim explained, "Many foreign workers in Korea are from Southeast Asian countries. Even though the rate of adult account ownership has risen in their home countries, it still remains low. For those who come from mountainous regions like Nepal, many have never even visited a bank in their lives, resulting in substantial differences in financial awareness."

Kim continued, "When foreign workers arrive in Korea, the first thing they need to do is open a payroll account and get a debit card, but even understanding these concepts can be challenging. Awareness of financial security is also lacking, so we make sure to thoroughly guide them on the basics, such as 'never lend your bankbook to someone else,' 'close your bank account before leaving the country,' and 'never share your PIN code.'"

Increasingly stringent compliance risks present another new variable. Kim stated, "As the nationalities of foreign residents in Korea diversify, regulations on countries with relatively weaker systems, such as Vietnam and Myanmar, have been internationally strengthened since COVID-19. As a result, the number of documents required for foreigners to conduct financial work such as opening accounts has increased, but there are physical limitations to providing sufficient prior guidance."

Language barriers also remain a significant obstacle for foreign residents. Eom commented, "No matter how important things like interest rates become, ultimately it's a matter of communication. Having someone who speaks your language can open the door to the bank in a much more approachable way." To address these language barriers, Hana Bank has significantly expanded its points of contact for communication with foreign customers. A mobile app now supports translation in 16 languages, and AI-based multilingual consultation services have been installed at branches. Currently, 16 foreign employees from 10 different countries are stationed at the head office's Foreign Exchange Customer Marketing Department to support branch operations. Hana Bank plans to hire about five more foreign staff at the head office by the end of the 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 the Remittance Market to the Loan Market... "Financial Education Must Go Hand-in-Hand to Prevent Defaults"

Among financial work targeting foreign customers, the overseas remittance market has become fiercely competitive since the 2018 amendment of the Foreign Exchange Transactions Act enabled small remittance businesses, including fintech companies, to enter the sector. Hana Bank has maintained its market leadership in this fully competitive environment by establishing one-on-one settlement networks with local banks. To meet the increased demand for mobile banking after COVID-19, the bank introduced a direct transfer feature in its mobile app that enables real-time remittance 24/7, further strengthening its market dominance. Kim noted, "Because overseas remittance involves multiple steps, errors are frequent, and if intermediary information is incorrect, funds are often returned. To minimize this, we've partnered one-on-one with local banks in 10 countries and plan to expand these partnerships further."

They also pointed out that as the market for loans to foreigners grows within the financial sector, financial education must accompany it to maintain market stability. Kim expressed concern, saying, "Most foreign workers are just starting their careers, and those from countries with less developed financial environments tend to apply for loans without a clear understanding. Although the scale of lending is increasing, risk education for these customers is severely lacking."

Hana Bank's foreigner-targeted credit loan product, "Hana The Easy Loan," has limited the loan amount to under 10 million won to manage risk, reflecting these financial realities. The interest rate is in the 6% range, similar to that for Koreans. Kim explained, "Loans to foreigners are typically approached as emergency funds, such as for sudden family illness. For initial expenses upon entering Korea, if the borrower repays the loan through Hana Bank in partnership with their home country's bank, we plan to offer preferential interest rates." Hana Bank currently has a partnership with a Sri Lankan bank and is pursuing expansion to Mongolia and Nepal.

Kim emphasized, "Countries that receive unskilled foreign workers often have financial service levels similar to Korea's in the 1970s and 1980s, so the gap in financial awareness can't be bridged with just one or two short training sessions. Especially for loans, financial education must move in tandem from the very beginning so that borrowers can fully understand the weight of their obligations."

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