Economic Essay Contest Smiles at airport, walls at bank. It’s time to break them down
Last semester, I joined my university’s language exchange program and got to know a French student learning Korean. Although he spoke Korean quite well, he always ran into trouble with one thing: banking. “All the apps are in Korean, so I can’t understand anything. Even in person, I struggle to follow what the staff are saying.”
His words reminded me of my own experience as an exchange student in Sweden. Faced with an unfamiliar automated phone system, I was overwhelmed and unsure what to do. That’s when it hit me — digital exclusion isn’t just an issue for the elderly; it’s a daily struggle for many foreigners.
In fact, the number of foreign residents in Korea has jumped from 490,000 in 2000 to 2.65 million in 2024, according to statistics from the Ministry of Justice. They’re no longer just visitors — they’ve become members of our society.
Still, they often face three key obstacles when trying to access basic financial services: language barriers, difficulties in verifying identity, and a lack of credit history. So how can we break down these three barriers and make sure foreigners have access to financial services from the moment they begin life in Korea?
The first solution I propose is an AI-powered multilingual voice system for customer service centers. While the Korean ARS menu is playing, the caller can simply say their native language and the system will instantly switch to that language. In the consultation phase, real-time AI translation enables seamless communication between the caller and a human consultant.
A 2024 report by the Hana Financial Research Institute found that most banking apps for foreigners still offer limited language support with inconsistent quality across banks. Because of this, sometimes traveling long distances to visit specialized branches for even basic transactions. That’s why I believe phone-based services like call centers deserve more attention.
I still remember how relieved I felt during my exchange semester in Sweden when simply saying “English” changed the entire phone ARS language. That small moment showed me just AI-powered multilingual voice system can break down language barriers. If Korean banks implemented such systems, foreign customers could get assistance without having to navigate complicated menus or visit a branch in person. In turn, banks could provide multilingual support more efficiently, without the need to hire dedicated language specialists.
The next challenge is identity verification. According to the Financial Services Commission of Korea, foreigners can use basic financial services — like opening accounts or applying for loans — only if they have an Alien Registration Card (ARC) or verify their passport in person.
Since there’s no remote system to authenticate passports before the ARC is issued, newly arrived foreigners are often blocked from using financial services during that waiting period. My Vietnamese friend had to rely entirely on Apple Pay and her international credit card for three weeks while waiting for her ARC.
To address this issue, I recommend a contactless identity verification system that combines NFC-enabled electronic passports with blockchain technology. By tapping their passport on a smartphone, foreign users could have their identity instantly verified through a blockchain-linked authentication system. This would allow them to access basic financial services — such as balance inquiries or money transfers — even before receiving their Alien Registration Card.
This idea is far from hypothetical. The EU’s eIDAS framework already enables cross-border digital identity systems, and countries like Germany, Finland, and Estonia are actively piloting digital identity wallets and NFC-based authentication. These initiatives demonstrate that blockchain-based passport verification is no longer a concept — it’s already functioning as a practical model.
Even after their identity is confirmed, insufficient credit history remains a major obstacle. Many foreigners are labeled as “thin filers,” lacking sufficient credit records, which leads to rejection from loans and even basic installment payment plans. That’s why I suggest adopting alternative credit scoring based on behavioral and transactional data.
NAVER Financial, for instance, already provides loans to small business owners — another group often considered “thin filers.” Their model evaluates factors such as sales trends, customer reviews, and return rates.
A similar approach could be applied to foreigners by assessing utility payments, phone bills, and online purchase history as indicators of financial reliability. Of course, any use of such data must be grounded in strong privacy protections. Principles like informed consent, anonymization, and transparent data usage must be strictly upheld.
If implemented responsibly, this kind of unstructured data-based assessment could allow foreigners to build credit within a short period and gain access to mainstream financial services. In turn, it would enhance financial inclusion and inject new vitality into Korea’s financial market.
Ultimately, language, identity, and credit remain the three major barriers keeping many foreigners from fully engaging with Korea’s financial system. Yet with AI translation, NFC-enabled passport verification, and data-driven alternative credit models, we have the capabilities to break down those barriers. Foreigners are no longer outsiders.
In a country facing low birthrates and an aging population, they are partners in building Korea’s future. Financial access is more than just convenience — it’s a foundation for trust and inclusion. And we can’t achieve this alone. Real progress happens when governments craft inclusive policies, businesses invest in enabling technologies, and society chooses empathy over indifference. Expanding financial access for foreigners isn’t just a policy choice — it’s a step toward a more inclusive, resilient, and future-ready Korea. And that step must be taken now.
Choi Yeong-ju is a student at Kwangwoon University.