By Lee Kyung-min
Local commercial banks are rushing to introduce foreign currency conversion fee waivers, in a move to lock in a greater number of outbound travelers amid heated market competition, market watchers said Wednesday.
This means commercial banks’ branches will find it increasingly hard to charge a foreign currency conversion fee of 1.75 percent for U.S. dollars, for example. The fee is 4.2 percent at Incheon International Airport.
Propelling the industry-wide competition was Toss Bank which announced Jan. 18 that it would begin waiving currency exchange fees. The internet-only bank was able to amass 300,000 new customers within only six days after the launch of a foreign currency account that offers a lifetime waiver of currency exchange fees.
The five major banks — Shinhan, KB Kookmin, Woori, Hana and NongHyup — have since been gearing up to roll out similar policies.
Shinhan plans to release a debit card that does not charge any overseas transaction fees on Feb. 14.
The SOL Travel Check Card offers preferential exchange rates for 30 global currencies. ATM service fees will be exempted during overseas travel. Cardholders will be able to use airport lounges for free and be given discounts at three major convenience store chains in Japan.
Hana issued a similar debit card, Jan. 18. Hana card users will be eligible for preferential exchange rates, and their overseas transaction fees and ATM fees will be waived.
KB, Woori and NongHyup are reviewing when to launch similar cards or accounts.
