Young People and Foreign Nationals Can Get Credit Cards With Security Deposits Without Visiting a Bank

FSC Newly Designates Four Innovative Financial Services

Going forward, young people and foreign nationals with limited credit histories will be able to obtain credit cards backed by a security deposit without visiting a bank.

The Financial Services Commission (FSC) said it held a regular meeting on Oct. 21 and newly designated four innovative financial services, including those described above. It also accepted a request to ease regulations on one existing innovative financial service. This brings the cumulative number of innovative financial services designated by the FSC to 1,168.

Shinhan Card's "Non-Face-to-Face Credit Card Issuance Service Backed by a Security Deposit" and Woori Card's "Credit Card Issuance Service for Foreign Customers Backed by a Security Deposit," newly designated this time, target so-called "thin filers" with limited credit histories. Previously, customers with limited credit histories had to visit a bank branch and go through complicated collateral procedures, such as pledging a deposit, to obtain a credit card. Going forward, they will be able to apply for a card remotely using a security deposit.

An FSC official said, "We expect the service to improve access to regulated financial products by making financial transactions more convenient while helping customers who have not yet established sufficient creditworthiness build an initial credit history."

BankSalad's "Low-Interest Loan Proxy Inquiry Service Using MyData" was also designated as an innovative financial service. Under the service, if users delegate authority in advance, BankSalad applies on their behalf for preliminary loan screenings when there is a positive change in their loan eligibility, such as an increase in their credit score or income, and informs them of the results. Users can compare the interest rates and terms of loans found through automatic searches, then visit the financial institution offering the most favorable terms to take out a loan directly.

MOIN's "Anonymous Prepaid Electronic Payment Instrument Service for Foreign Visitors to Korea" was also newly designated. Under the service, MOIN can issue anonymous prepaid electronic payment instruments worth up to 1 million won to foreign visitors to Korea who complete identity verification using a passport or other means. This doubles the issuance limit from the current 500,000 won.

In addition, the FSC accepted a request from Naver Financial and Hana Bank to improve regulations related to their "Pay Money Account Service." The FSC plans to pursue follow-up regulatory improvements, including revising laws and regulations concerning registration requirements for sellers and brokerage agents of deposit-type products.

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