Banks set up programs for foreign workers

A foreigner works with his korean collegues at a small factory.

Reduced remittance fees, Sunday banking among services offered

Romanov Jaboronbek, an Uzbek that has worked at a factory in southern Incheon for two years, recently opened an account named the "Korean Dream" at the Korea Development Bank. Romanov, 27, can save 10,000 to 20,000 won (US$10-20) in transaction fees when he remits 1.4 million won every month to his hometown.

The fee savings amounts to a large sum of money for his family there, he said. In addition, the bank has granted him insurance, which will award 20 million won in compensation in case of injury.

As the number of foreigners living here in South Korea has exceeded 800,000 according to the Ministry of Justice, local banks are rushing to open services tailored to this emerging customer group. The new financial services remain in their initial stage. But they come from a good sentiment: to grant benefits to those who live far away from their native lands.

The "Korean Dream" accounts unveiled in July by the Korea Development Bank are notable in that they are available only to foreign residents and their spouses. Through the accounts, customers enjoy a 50-percent discount off transaction fees for money remittances and currency exchange services.

Particularly, the new financial service provides insurance for local foreign residents, many of whom are engaged in high-risk, labor-intensive work. No matter how early they close their accounts, they are not penalized in lost interest fees. Thanks to the draw of such benefits, 2,523 of such accounts have been opened in only two months since their launch, according to the bank.

Woori Bank, Kookmin Bank, and Korea Exchange Bank have also joined the move. They all unveiled a "Sunday Service" program designed to provide seven-days-a-week financial service for foreigners who cannot afford to find time to do banking during the work week or on Saturday.

In June, Woori Bank opened a money-remittance branch in Hyehwa, where many Philippine workers are living. Kookmin Bank also opened a branch only for foreigners in Ojang, where many Mongolian workers are residing. In Daelim, Wongok, Daewha, and Uijeonbu, Korea Exchange Bank has started its Sunday service for foreign workers.

Still, there is much to be desired in terms of foreigners using South Korea's banking industry, observers noted, saying that there are many cases in which foreigners cannot even open an account due to the language barrier.