Hana leads race for Korea's growing foreign banking market

Hana Bank has the strongest position in foreign-held deposit accounts among the Korean banks covered. It recorded 4.2 million accounts as of Sept. 21. That total is far above the figures reported for its main competitors. The data shows Hana has built a substantial foothold in this growing market.

Woori Bank ranked second with 2.56 million accounts. Hana therefore led Woori by 1.64 million accounts. KB Kookmin ranked third with 1.49 million, followed by Industrial Bank of Korea with 1.32 million and Shinhan with 1.3 million. NH NongHyup had about 877,000, while Toss Bank had about 321,000.

These figures count accounts, not individual customers. One foreign resident may hold several accounts, so the ranking does not directly show customer market share. It still offers a useful snapshot of which banks have established the strongest presence as Korea’s foreign population expands and competition intensifies.

A deposit account is a bank account used to hold deposited money. It can also support everyday banking activity, such as transfers and payments. In this story, the banks’ figures show how many deposit accounts belong to foreign individuals in Korea. They provide a way to compare banks’ positions in the market.

Accounts are not the same as people. A single foreign resident might open separate accounts for different purposes or at different banks. For example, one person could have two deposit accounts, but the data would count two accounts and only one customer. Hana’s 4.2 million accounts therefore do not mean 4.2 million foreign customers.

This distinction limits what the rankings can prove. The figures do not directly measure customer market share or reveal how many unique people each bank serves. They remain useful, however, because they show relative account holdings and indicate which lenders may have developed a stronger foothold among foreign residents.

South Korea’s foreign population reached 2.87 million people staying in the country at the end of August. The total was 5.3 percent higher than a year earlier, according to the Ministry of Justice. This growth gives banks a larger and increasingly important group of potential customers.

Long-term residents made up 2.25 million of the total. These residents are more likely to need continuing access to basic financial services as they live and work in Korea. Their needs can include opening accounts, sending money overseas, making payments and managing transfers. The article uses the population figures as the broader setting for the banks’ competition.

The growth also helps explain why lenders are expanding tailored services. Hana operates specialized branches, Woori offers Sunday banking, and other banks are adding language support or mobile account opening. As the foreign population grows, banks are competing to establish relationships early and keep serving customers digitally.

Foreign residents matter because their numbers are growing and many are building lives and careers in Korea. The country had 2.87 million foreign nationals staying there at the end of August, up 5.3 percent from the previous year. That creates a larger potential market for banks seeking new customers.

These customers need practical financial services. They may open deposit accounts, receive or make payments, transfer money and send funds overseas. Banks view the first account as a starting point for a broader relationship. Once customers are established, lenders can offer additional services linked to their daily lives and work in Korea.

The opportunity is also shaping competition. Banks are adding Sunday hours, specialized branches, foreign-language employees, translation tools and mobile account opening. The market is not only about attracting accounts today. It is about making banking easier enough that foreign residents continue using the same lender as their financial needs expand.

For banks, a deposit account is often the first step in serving a customer. It gives a foreign resident a way to keep money and manage basic transactions in Korea. More importantly for lenders, the initial account can create an ongoing relationship rather than a single interaction.

Once the relationship begins, banks can offer overseas remittances, payments and transfers. These services may become useful as foreign residents establish their lives and careers in Korea. The article specifically identifies remittances and payments as opportunities that can follow account opening. Digital tools can make later transactions easier after the first account is created.

This model helps explain the competition among Korean banks. Hana said it aims to handle initial transactions face to face, then move services such as remittances and transfers online. Other lenders are also improving branches and mobile applications. The goal is to win the first account and then retain the customer across more financial services.

Korean banks are adapting branches around foreign customers’ schedules and language needs. Hana operates 17 specialized branches offering Sunday services and hires foreign staff. Woori also highlights Sunday banking and communication in customers’ native languages. These changes address the practical barriers that can make ordinary weekday banking difficult.

The approach is visible across several lenders. Shinhan expanded Sunday banking to branches in Busan and Daegu in April. NH NongHyup introduced dedicated service desks at three branches last October, using translation technology that supports 38 languages. Woori said some customers prefer in-person help because they worry about making mistakes in Korean mobile applications.

This branch investment is notable while Korea’s overall branch network is shrinking. The number of outlets operated by 16 banks fell by 111 to 5,514 last year. Specialized locations therefore focus limited physical resources on customers who may need language assistance, flexible hours and guidance through Korea’s financial system.

Personal assistance matters because foreign customers may face language barriers and unfamiliar financial procedures in Korea. Hana said it wants to handle initial transactions face to face. Staff can explain the process, help customers avoid mistakes and make account opening less intimidating. Sunday hours also help people who cannot visit during the work week.

Digital services become more useful after customers understand the system. Hana aims to move later activities, including overseas remittances and transfers, online. According to the FSS submissions, KB Kookmin, Shinhan and Toss allow eligible foreign applicants to open accounts immediately through mobile channels. Woori uses one-day approval, while Hana requires approval during business hours.

Banks therefore need both forms of service. Branches build trust and solve language or process problems at the beginning. Mobile tools provide convenient access afterward. Hana reported that mobile transactions among foreign customers have increased significantly and plans to simplify procedures, while Kakao Bank has entered with app-based services in three languages.