As the demand for dollars increases due to the rise of overseas investors (domestic investors investing abroad), the banking sector is launching a series of products and services linked to foreign currencies and overseas stocks to capture customers. Various benefits, including a 100% exchange rate preference, are also diversifying with foreign exchange and overseas stock trading exclusive accounts.
According to the Bank of Korea on the 21st, as of the end of June, the foreign currency deposits of resident customers at foreign exchange banks amounted to $106.44 billion, an increase of $5.08 billion from the end of the previous month. Among these, dollar deposits were the highest at $3.6 billion. Deposits in yuan totaled $1.1 billion, while yen deposits accounted for $260 million. The balance of financial investments in the United States also exceeded $960 billion last year, marking a record high.
The scale of foreign currency deposits at the four major banks (Shinhan, KB Kookmin, Hana, and Woori) has also increased during the first half of this year. The average balance of foreign currency deposits at Shinhan Bank for the first half of the year was 26.9268 trillion won, approximately a 7% increase from the end of last year (25.0674 trillion won). The proportion of foreign currency deposits in overall funding also grew from 5.36% to 5.51% during the same period. Additionally, Kookmin Bank increased from 25.8682 trillion won to 26.4351 trillion won, Hana Bank rose from 41.41 trillion won to 43.4966 trillion won, and Woori Bank expanded from 32.7289 trillion won to 35.1317 trillion won.
In line with this trend, the banking sector is swiftly launching foreign currency products and services such as international remittances, currency exchange, and overseas stock transactions. Hana Bank partnered with Hana Securities to launch a dedicated account for overseas stocks in May. Previously, customers had to transfer funds to a separate securities account to trade overseas stocks, but now they can buy and sell overseas stocks directly with the foreign currency they hold in the dedicated account. Hana Bank is offering a 100% exchange rate preference and waiving all trading fees for new customers for six months. Minors can also open accounts.
Shinhan Bank is showcasing its Value-up global stock foreign currency deposits and is running a 100% exchange rate preference event until October of this year. This product, similar to Hana Bank's, links foreign currency deposits to overseas stock transactions.
Woori Bank plans to launch a service through its application, 'Woori WON Banking', enabling overseas stock transactions from December. It will allow customers to open stock accounts, trade, and check their balances and returns all within one integrated app, eliminating the need to install a separate mobile trading system (MTS). IBK Corporation Bank is offering exchange rate preferences, reduced foreign exchange fees, and prizes to corporate customers with an investment amount of less than $100,000 until November 30.
However, these products and services are operated not to generate revenue but rather to provide customer convenience or to prevent losing existing customers. In fact, Kookmin Bank's foreign exchange income revenue was 74 billion won for the first half of this year, a decrease from 78.8 billion won in the same period last year, while Woori Bank's revenue fell from 56.1 billion won to 54.7 billion won in the same timeframe. In contrast, Shinhan Bank's revenue slightly increased from 121.3 billion won to 129.3 billion won.