Luis Riestra,
CEO of Wise & Wealthy |
By Kim Jae-kyoung
Staff Reporter
Local banks are bolstering services for foreign residents with the non-Korean population reaching 1.1 million people, or 2 percent of the total population.
They are working to remove barriers for foreign customers, allowing them to remit more than $10,000 abroad without the need for paperwork, and giving international ATM access to their cash abroad through credit cards.
Out of the 1.1 million foreign customers, about 40 percent are Chinese-Koreans and 75 percent earn a regular salary and hold a visa. Over 350,000 foreigners qualify to obtain credit cards.
Major banks are changing their attitude toward non-Koreans as they see the big opportunities this segment represents to be good and growing. For its part, the Financial Supervisory Service (FSS) has eased regulations for foreign account holders.
In the eyes of Luis Riestra, CEO of Wise & Wealthy, a firm dedicated to Korea's globalization through overseas market research and foreign investments, there has been, and will be, a major shift in attitude toward foreign customers by banks.
In an interview with The Korea Times, Riestra, who has lived in Korea for nine years, said that several banks are starting to perceive expatriates from a totally new perspective than the one that saw them neglect the group.
``This year, banks started to change the most important of all aspects, their attitude. With an attitude change based on understanding and improvements, they have undertaken the first and biggest step,'' he said.
``The FSS has eased enough this year so that there aren't any major obstacles. Allowances on remittance and international use of ATM cards by foreigners are back to normal, (with) improved status, and there should be no further complaints,'' he added.
Riestra pointed out that although foreign residents are literally a gold mine for foreign currency exchange and remittances, some big banks remain ignorant and disregard the opportunity they provide, making many enemies among non-Koreans.
According to Riestra, there were three major changes for foreign customers ― tellers, credit cards and international ATM cards.
First of all, some local lenders provide expatriate-only services at a few of their branches.
``Nowadays, many have a handful of 'designated branches' where usually one or two tellers service foreign customers,'' he said. ``You can find branches with one of these desks and get directions from their Web site.''
Secondly, credit cards are a service foreigners are encouraged not to miss. Although some stigma still exists against certain occupational groups, aliens with credit cards are proliferating here.
Some banks, including Korea Exchange Bank, issue credit cards to non-Koreans that allow them to see all the details of their purchases, make cash advances while overseas and manage other features online, all in English.
``Through English-based Internet banking, foreigners can remit funds overseas. (If you) get your card and Internet access set up, you may not have to take a waiting-number at a branch ever again,'' he said.
Thirdly, with the government easing regulations, foreigners now have international ATM access and are able to remit over $10,000 out of the country. They can withdraw cash worth $50,000 equivalent in won at ATMs outside of the country. ``If any foreigner has an ATM card that was issued before this free-market type of move, they might need to get it changed,'' he said.
Riestra, who is Korea's first foreign holder of a masters degree in foreign direct investment at KDI School, strongly recommended that foreigners develop a relationship with their branch to get better services and negotiation power.
He advises foreigners to find out where designated branches are for their bank, cluster their financial activity at these places, develop some personal rapport with their regular teller, and take advantage of advanced features and services provided by the most proactive banks.
kjk@koreatimes.co.kr
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