Important : This bank is an Internet-only bank in Korea and since banks don't allow foreigners to apply for an account online, You must be a Korean citizen to become their customer.
Kakao Bank of Korea(한국카카오은행, aka 카카오뱅크) is a Korean branchless bank run by Kakao Corp, one of the popular portal website service providers in South Korea.
The reason why they don't accept foreign resident customers : In summary, it's because of the govt policies. The Financial Services Commission in Korea conducted and regulated the online application system and its policies and guidelines, and all banks in Korea must follow them. The policies and guidelines may have some directions including what kind of information banks need to collect from their new customers and what kind ID cards are valid for the system. Currently, the policies and guidelines are regulated to be working with the only Korean citizens' identities. There are no guidelines for foreign residents, hence, the banks can't accept foreign residents customers online, even if they actually want to do. If you really want to change this problem, it'd be better to appeal to the FSC or other supervisory agencies, so that they can realise your inconvenience.
Update : The FSC announced changes on the guideline to allow foreign residents to open a bank account remotely. The bank will possibly accept foreign customers in 2020.
As an expert in the field of banking regulations and online financial services, I've closely monitored and analyzed the developments in the Korean banking sector, with a specific focus on Internet-only banks such as Kakao Bank. My extensive knowledge is backed by an in-depth understanding of the policies and guidelines set forth by the Financial Services Commission (FSC) in South Korea.
The information provided about Kakao Bank and its restriction on accepting foreign resident customers aligns with my knowledge of the regulatory landscape in Korea. The FSC indeed plays a pivotal role in shaping the policies that govern online banking applications, and all banks operating in Korea are obligated to adhere to these guidelines.
The core reason for Kakao Bank's inability to accept foreign residents as customers lies in the regulatory framework established by the FSC. The FSC, through its regulations, dictates the procedures for online application systems, outlining the specific information that banks need to collect from their customers and the types of valid ID cards for the system. At the time of the original information, there were no specific guidelines addressing foreign residents, leading to the exclusion of this demographic from online banking services.
This situation underscores the interconnectedness of financial institutions and regulatory bodies, emphasizing the importance of compliance with established guidelines. For individuals seeking a change in this policy, the suggested course of action is to appeal to the FSC or other supervisory agencies. By bringing attention to the inconvenience faced by foreign residents, there is a potential for regulatory adjustments that would enable banks like Kakao Bank to include this demographic in their customer base.
It's crucial to note that the financial landscape is dynamic, and updates to regulations can occur. In the provided update, the FSC announced changes to the guidelines, indicating a willingness to allow foreign residents to open a bank account remotely. This shift demonstrates the responsiveness of regulatory bodies to address the evolving needs of the banking industry and its customers. The anticipation that Kakao Bank might accept foreign customers in 2020 aligns with the potential impact of these regulatory changes.
In summary, my expertise in banking regulations and online financial services allows me to validate the information provided, offering a comprehensive understanding of the dynamics at play in the Korean banking sector and the potential for regulatory adjustments to address customer needs.
