Value context and insight. lkm@koreatimes.co.kr
Banks rush to roll out loans for foreigners
A bank branch in Seoul / Yonhap
By Lee Kyung-min
The country’s leading commercial lenders are launching loan products for foreign workers, a shift in retail banking that bolsters financial inclusion for the growing number of non-Koreans in the nation while overcoming rapid industry saturation, market watchers said Thursday.
The number of legally employed foreign workers in Korea now exceeds 567,000 of the 2.56 million foreign residents of Korea, according to justice ministry data.
Shinhan Bank, NH NongHyup Bank and Hana Bank each unveiled new credit loans tailored for foreign nationals employed in Korea, a group of underserved workers.
Shinhan’s product, SOL Global Loan, targets foreign nationals holding E-9, E-7, F-2 and F-5 visas.
Up to 20 million won ($14,280) will be loaned, if their visa expiration date is six months away or longer.
Shinhan is currently operating foreign-focused branches in Gimhae, South Gyeongsang Province; Doksan, Seoul; and Ansan, Gyeonggi Province.
NH NongHyup has a similar product that provides loans of up to 30 million won to foreign workers who have been employed for at least six months, as verified by the National Health Insurance Service. Holders of F-2, F-5, F-6, E-7 and E-9 visas are eligible.
A Hana Bank product targets holders of E-7 and E-9 visas.
Up to 10 million won in loans will be offered through in-person consultations at 16 Hana branches specializing in foreign customer services.
“We believe the products would help many foreign workers with housing, education and financial planning,” an industry official said. “More foreign workers in the manufacturing and service industries are expected to use our services."