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| A person uses Kakao Bank's services with a smartphone in this July 2017 file photo. / Yonhap |
By Park Jae-hyuk
Foreign residents here will be able to use the internet-only Kakao Bank and K bank starting next year, as the nation's financial authorities will allow customers to use their alien registration cards when opening accounts online.
The Financial Services Commission (FSC) said Sunday the revised identification guidelines for non-face-to-face transactions will take effect Jan. 1, 2020.
Since the nation's first internet-only bank started its business in 2017, foreign financial customers have complained of the nation's outdated identification systems that prevent them from their using alien registration cards to open accounts online.
Although foreigners have been able to use internet and mobile banking services by opening accounts at offline bank branches with the necessary documents, they have been blocked from the internet-only banks that do not have offline branches.
Foreigners have regarded the regulations as discriminatory, given that the internet-only banks offer better interest rates and convenient services.
Data compiled by the FSC showed 9.2 million accounts were opened in 2018 without face-to-face identification. During the first half of 2019, 7.21 million accounts were opened via online.
In addition, data from the Ministry of Justice showed 2.36 million foreigners were residing here as of the end of 2018, an increase of 8.6 percent from the previous year.
"Foreigners have been unable to use their registration cards for non-face-to-face transactions, although the registration cards can be used for face-to-face transactions," an FSC official said. "We will continue discussions with related institutions to establish an identification system regarding alien registration cards."
The financial regulator also decided to allow corporations to open accounts without face-to-face identification, if their executives or employees submit the necessary documents.
