Korean startups expand overseas remittance services for foreign residents

Startups in Korea are moving quickly to expand overseas remittance services targeting the country’s growing population of long-term foreign residents.

According to Justice Ministry data, 2.65 million foreigners were living in Korea as of the end of last year, including 2.04 million long-term residents.

Industry sources said Monday that SentBe and Hanpass are among the most recognized players in this market. Their services emphasize lower fees than banks and the convenience of transferring money anytime through mobile apps or web platforms.

SentBe, founded in 2015 by former banker Choi Sung-wook, promotes its fees as being up to 90 percent cheaper than those of banks. The company offers transfers to more than 50 countries.

Unlike banks, which adjust fees based on the transfer amount, startups apply a flat fee per transaction. At SentBe, the minimum fee is 2,500 won ($1.80).

To prevent unlimited transfers, the company has set limits on both annual and per-transaction amounts. “Users can send up to $5,000 per transaction within an annual limit of $50,000,” a company official said.

The official said that the cost advantage comes from using an alternative network. While banks rely on swap networks to securely exchange foreign currency, licensed remittance firms like SentBe cannot access them.

Instead, SentBe partners with more than 80 global financial service providers, operating through their networks to lower fees.

Recently, SentBe also partnered with ARGOS Identity, a domestic startup, to introduce an artificial intelligence (AI)-based identity verification feature. By automatically scanning passports and alien registration cards and matching them with facial images, the service allows foreigners to complete verification procedures more easily.

Viva Republica, operator of the financial super-app Toss, has also entered the market by integrating SentBe’s remittance service into its “App in Toss” feature, which connects external apps to the Toss platform.

Hanpass, founded in 2017 and preparing for a Kosdaq listing, is also broadening its offerings for foreign residents, including e-commerce services alongside overseas remittance.

“With the number of foreigners living in Korea expected to increase, demand for overseas remittance will grow as well,” a SentBe official said. “We plan to expand our services accordingly.”

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.