Korean banks expand loan offerings to foreign residents amid rising competition

South Korean lenders are intensifying efforts to capture the nearly 3 million foreign residents living in the country by offering dedicated loan products. Hana Bank’s Foreigner EZ Loan, Shinhan Bank’s SOL Global Loan and NH NongHyup Bank’s K-Foreigner Credit Loan provide credit up to 30 million won for visa holders, with terms of up to 30 months. Regional banks, including Jeonbuk Bank and Kwangju Bank, have expanded their foreign-customer portfolios, reporting loan balances of 664.8 billion won and 70.6 billion won respectively.

Digital-only platform KakaoBank has recently added checking accounts and remittance services for foreigners and is evaluating loan introductions for next year. Industry officials stress that evaluating borrowers’ credit risk is challenging because many lack Korean credit records, prompting banks to consider foreign-country credit data and visa-related criteria.