Regional banks bolster support for low-credit foreign workers

Regional banks are rushing to roll out low-interest loans for foreign workers, a much-needed product for non-Korean borrowers with little credit history here, market watchers said Thursday. The so-called “thin filers” are those who find it difficult to use financial services in Korea, despite their contribution to the economy in remote non-Seoul regions grappling with severe labor shortages. Many find the borrowing costs here are low compared to their home countries, where only high-interest products are available. Jeonbuk Bank offers foreigner-only credit loans. Its interest rate is 13 percent, which one worker from Myanmar said was only 30 to 40 percent of what they had to pay in monthly interest to banks in their home country. In 2016, the North Jeolla Province-based bank became the first commercial lender in Korea to introduce credit loans for foreigners. "We saw strong borrowing demand from foreigners staying here on E-9 visas, which are issued for work in manufacturing, construction, agriculture and livestock industries," a JB Financial Group official said. Jeonbuk Bank is its sWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times