There is a bank that provides credit loans to foreign workers?

Commercial banks in Korea do not lend out credit loan to foreign residents except in special cases such as permanent residents. A credit loan refers to lending money based on a person's credit rating without any collateral.

The reason commercial banks do not lend out credit loan to foreign residents is that the delinquency rate of non-payment of money is relatively high, and if a person leaves the country in a state of delinquency, it will cause damage to the bank. However, considering the profits that foreign residents bring to the bank when they open and use a bankbook, and the fees they pay to the bank when remittance money to their home country, it is inevitable that Korean banks are neglecting the financial services of foreign residents. If the delinquency rate is high, there is a way to solve the loss by raising the interest rate of the loan product, but most banks are neglecting this.

However, here is a bank that provides credit loans to foreign workers with E-9 non-professional work visas. Jeonbuk Bank Suwon Foreigner Financial Center provides credit loans (JB BRAVO KOREA LOAN) to foreign residents with most visas, such as E-9 non-professional employment, H-2 visiting employment, E-7 specialized employment, F-2 residence, F-4 compatriots, and F-6 marriage migration. Loan amounts range from a minimum of 3 million won to a maximum of 20 million won.

So, what is the secret of the Jeonbuk Bank Suwon Foreign Financial Center's ability to provide foreigners credit loans that most other banks do not?

This is because they were convinced that by lending credit to foreign residents, they could attract customers and generate more profits. The bank's will to provide Korea's advanced financial services to foreign residents suffering from financial blind spots is also included.

Yang Gwang-young, head of the Suwon Foreign Financial Center, said: “Before opening the Foreign Financial Center in 2017, I conducted market research in Cambodia, Myanmar, Nepal and other countries. I learned that many foreign workers come to Korea by borrowing money at a high interest rate of 30% or more per year. If they come to Korea and lend money to people with stable jobs at 15% interest, it will be helpful to foreigners and the bank will also be able to earn money.”

If so, wouldn't the delinquency rate of foreign credit loans be high? Could Jeonbuk Bank be losing money? It is true that the delinquency rate on foreign loans is higher than that of Koreans. However, it is said that the delinquency rate on foreign loans are lower than that of the second financial sector, such as capital. Capital is the second place where Koreans who cannot borrow money from banks go to borrow money. The easier it is to borrow money, the more interest they have to pay.

“Jeonbuk Bank began providing financial services for foreign residents that other banks did not provide. After operating for three years, we now have foreign credit rating information that no other bank has. We are working hard to provide greater financial services to foreign residents.”

Jeonbuk Bank Suwon Foreigner Financial Center provides services such as overseas remittance, deposit and check card issuance in addition to credit loan (JB BRAVO KOREA LOAN) for foreign residents. Overseas remittances can be made free of charge through smartphone banking, and deposit withdrawals through check cards are also free of charge.

There is no need to worry that it will be difficult to conduct banking business because you do not speak the language. Jeonbuk Bank Suwon Foreign Financial Center has employees from 12 countries, including China, Vietnam, Mongolia, Philippines, Uzbekistan, Thailand, Cambodia, Bangladesh, Sri Lanka, Indonesia, Myanmar and Nepal.

It has secured the best financial service resources for foreign residents in the country. Based on these resources, before the corona virus, an event was held to promote advanced finance such as a ‘special lecture on credit management’ for foreign residents.

The person who prepared and planned all these foreign services was the head of the center, Yang Gwang-young. “For the past two years, the number of foreign workers has decreased significantly due to the corona virus, and the Suwon Foreign Financial Center has also had a rather difficult time. But now that social distancing is gone and foreigners are free to enter and leave the country, I hope that more foreign workers will grow in Korea through finance and achieve their desired goals.”

Jeonbuk Bank's Suwon Foreign Financial Center is a leading provider of foreign financial services that other banks have neglected to provide practical benefits to foreigners. This is why we praise Jeonbuk Bank. 

Jeonbuk Bank Suwon Foreign Financial Center 031-223-7284

Reporter Hasung Song

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