SEOUL: Hana Bank has emerged as the clear leader in deposit accounts held by foreign nationals in South Korea, according to exclusive regulatory data offering a glimpse into how lenders are positioning themselves in the country’s expanding foreign banking market.
Hana held 4.2 million deposit accounts belonging to foreign individuals as of Sept 21, far ahead of Woori Bank’s 2.56 million, according to Financial Supervisory Service data obtained by People Power Party Rep Park Sung-hoon and shared exclusively with The Korea Herald on Tuesday.
KB Kookmin Bank ranked third with 1.49 million accounts, followed by Industrial Bank of Korea with 1.32 million and Shinhan Bank with 1.3 million.
NH NongHyup Bank had about 877,000 accounts and Toss Bank about 321,000.
The figures count deposit accounts rather than individual customers, meaning one person may hold multiple accounts. While they do not directly measure customer market share, they offer a snapshot of banks’ relative positions in an increasingly competitive market.
The rankings come as South Korea’s foreign population continues to grow, creating new business opportunities for lenders.
The country had 2.87 million foreign nationals staying here at end-August, up 5.3% from a year earlier, according to the Justice Ministry. Of those, 2.25 million were long-term residents. For banks, deposit accounts are often the starting point for broader customer relationships, opening opportunities to offer overseas remittances, payments and other financial services as foreign residents establish their lives and careers in South Korea.
The competition highlights the continued importance of personal contact in an increasingly digital banking industry.
Hana, which operates 17 specialised branches offering Sunday services, said face-to-face assistance remains central to its strategy. The bank also hires foreign staff to help customers overcome language barriers and navigate its financial system.
“Given the difficulties customers face with language and a financial environment different from their home countries, we aim to handle initial transactions face-to-face and subsequent transactions, such as overseas remittances and transfers, digitally,” a Hana Bank official said.
Woori, which ranked second, also credited specialised branches and Sunday banking as vital in attracting foreign customers.
“Many foreign customers find it difficult to visit a bank during the work week. Offering services on Sundays and communicating in their native languages has helped us attract customers,” a Woori official said.
The bank added that customers unfamiliar with South Korean may prefer in-person services as they worry about making mistakes when navigating mobile banking applications. Other lenders are strengthening services for foreign customers even as South Korea’s bank branch network shrinks.
The number of outlets operated by 16 banks fell by 111 to 5,514 last year, based on figures provided by Korea Federation of Banks on March. — The Korea Herald/ANN
