Banks compete for overseas remittance biz

gettyimagesbank

By Lee Kyung-min

Banks are leading an intensive marketing campaign to take the upper hand in the overseas remittance business, the market share of which is increasingly encroached upon by new competitors such as card and insurance firms, industry officials said Wednesday.

The move comes amid an increase in overseas remittance volume over the past few years. It jumped to $13.4 billion (15 trillion won) in 2018, up 54 percent from $8.7 billion in 2015.

State lender Industrial Bank of Korea (IBK) began an event whereby Chinese customers will be given red envelopes or a red packet, customarily given to loved ones during holidays or on special occasions in China.

The event will be held at over 100 branches nationwide in areas with high Chinese presence such as Ansan, Sihwa and Seoul's Itaewon.

Another ongoing event that runs until December 2020 saves foreign workers 2,000 won in remittance service fees for amounts over $500 wired to overseas accounts.

The fee will be reduced for up to five transactions for customers who send money via ATMs or online and cellphone banking platforms.

Shinhan Bank holds a special promotion through February 2020 to draw more customers with overseas travel plans.

The bank will hold a draw to give out travel vouchers worth between 300,000 won and 1 million won to up to 10 customers. Gifticons for a cup of coffee will be given to 200 others.

Eligible to apply are those who exchange or wire overseas over $100 at the bank and those who have over $100 balance in certain debit card accounts issued by Shinhan Card.

Woori Bank holds an event that benefits students with plans to study overseas as well as overseas Koreans staying here.

Up to 50 percent prime rate will be offered to customers that make overseas remittance transactions in U.S dollars, Japanese yen and euro at the bank's branches nationwide.

A flat 5,000 won wire fee will be applied regardless of the amount remitted.

“The event was organized to give to customers that frequently use our remittance service. More benefits will be in store to better tailor the needs of our valued customers in the long term,” a Woori official said.