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By Jhoo Dong-chan
The nation's major banks are rushing to attract more foreign customers as the number of residents of Korea from overseas has surpassed 2 million.
Banks have introduced various special financial services exclusively for foreigners, including free overseas wire transfers and even housing loans for "jeonse" payments.
Jeonse, also known as a key money deposit, is a real estate practice unique to Korea in leasing apartments. The renter pays the landlord a large sum of money as a deposit instead of paying monthly rent. Shinhan Bank is the only commercial bank that offers housing loans for this purpose for foreigners.
A foreign tenant who signs a housing lease agreement through a real estate agent paying at least 5 percent of the lease deposit is eligible for the Shinhan Dream Jeonse Loan. They should also be older than 23 and hold a visa valid for more than three months.
The bank offers loans of up to 200 million won ($181,143). A Shinhan Bank official said the loan is popular not only among high-income foreign residents of Seoul but also middle-income foreigners in other regions.
"About 70 percent of the product customers are Chinese," a Shinhan Bank official said.
"The Jeonse product is especially popular among foreigners living in Suwon, Gyeonggi Province. Shinhan Bank will continue introducing various financial products to satisfy a wider range of customers."
Shinhan Bank also operates three foreign exchange centers exclusively for foreign residents in the capital area. Located in Ansan and Uijeongbu in Gyeonggi Province and Daelim-dong in southwestern Seoul, they open even on Sunday to provide various financial services including foreign exchange, wire transfers and loans.
In March, the Uijeongbu foreign exchange center opened Rainbow Cafe where people can learn Korean. It also provides an immigration consulting service.
KB Kookmin Bank is also attracting foreign customers with its expanded wire transfer and foreign exchange services. It is running the KB ONE ASIA Overseas Remittance Service, a specialized overseas remittance service, as well as the KB Welcome Package, a comprehensive banking service only for foreign customers.
The bank also provides interpretation service for people from Cambodia, Vietnam and Myanmar at its foreign exchange branches.
Last October it opened its fifth foreign exchange service center at a Uijeongbu branch, after ones in Ansan and Ojang-dong in Seoul, Gimhae in South Gyeongsang Province and Gwangju in Gyeonggi Province.
NH Nonghyup and Woori Bank are also running similar foreign exchange and wire transfer services through smartphone apps.
"The number of long-term foreign residents who live here for more than 10 years has nearly doubled in the past decade," an industry observer said.
"They are stable and long-term customers for commercial banks in Korea. Many of them are also high-income people. Banks will soon introduce more wealth management products exclusively for high-income foreign customers."
