VIENTIANE: Laos and the Republic of Korea’s banks have entered a partnership to facilitate remittance transfers from Korea - one of the main destinations for Lao migrant workers - back to Laos.
The Lao Development Bank Co Ltd (LDB Bank) and the BNK Busan Bank (BNK Busan Bank) signed a memorandum of understanding (MoU) on August 29 to strengthen cooperation in remittance services.
Under this agreement, Lao employees working in Korea will be able to send money home more conveniently, securely and free of charge.
The ceremony for the signing of the MoU was attended by the Deputy Minister of Labour and Social Welfare, Phongsaysack Intharat, the representative of the Ambassador of the Republic of Korea to Laos, Lee Dong Yoo, the Acting Chairman and CEO of Lao Development Bank Limited, Sithong Chitnothin, the Chairman of BNK Financial Group, Bin Dae In, the Managing Director of Lao Development Bank, Fongsamout Douangchai, and the Executive Director of BNK Busan Bank, Bang Seong Bin, along with senior executives from the Lao government, LDB Bank and BNK Financial Group.
The partnership aims to connect the financial systems of both institutions and provide comprehensive banking services to Lao workers in Korea under the Employment Permit System and the Seasonal Work Programme.
Currently, around 8,000 Lao workers are able to remit money to their families in Laos safely and efficiently through the two banks’ systems, free of charge.
This initiative reduces costs and builds trust among workers and their families, and simultaneously enhances payment systems and international financial services, supporting broader economic and trade relations between Laos and the Republic of Korea.
Remittances sent home by Lao workers abroad play an increasingly important role in the country’s economy. According to the Ministry of Labour and Social Welfare, Lao nationals working overseas transferred more than US$29 million back home during the first half of this year alone.
Given their significant contribution, establishing safe and reliable remittance-transfer channels through partnerships with foreign banks is essential not only for worker support but to strengthen trade and investment cooperation.
The LDB Bank has currently forged partnerships and interconnected with 17 leading financial institutions in nine countries - China, Thailand, Vietnam, Indonesia, Germany, the United States, the United Kingdom, Singapore and Korea.
This demonstrates LDB Bank’s commitment to continuously strengthening its global cooperation and expanding international financial and banking services to meet global standards and align with internationally accepted financial regulations.
At the same time, it enables Lao citizens and business entities abroad to conveniently access international financial services with Laos through the payment system of Lao Development Bank.
Additionally, LDB Bank remains committed to further enhancing its collaboration with BNK Lao MFI. This partnership is further strengthened by the fact that BNK Lao MFI operates as a subsidiary of a reputable financial group, which adds to the stability and credibility of the joint initiatives. - Vientiane Times/ANN
