Remittance data reveals a significant shift in the financial habits of foreign workers residing in South Korea, with an increasing number opting to send money to their own accounts abroad rather than to family members. (Image courtesy of South Gyeongsang Province)
SEOUL, Jul. 24 (Korea Bizwire) – A recent analysis of remittance data reveals a significant shift in the financial habits of foreign workers residing in South Korea, with an increasing number opting to send money to their own accounts abroad rather than to family members.
BC Card, in collaboration with fintech company Global Money Express (GME), examined the remittance and spending patterns of approximately one million foreign workers in South Korea. The study, released on June 22, shows a notable change in the destination of international money transfers.
In the first half of 2021, 58% of remittances were sent to parents, siblings, or spouses. However, this figure dropped to 49% in the same period this year. Conversely, the proportion of transfers to workers’ own accounts abroad has risen significantly.
Last year, it surpassed 20% for the first time, and this year it reached 25% — a 10 percentage point increase compared to 2021.
“Most foreign workers in South Korea are part of the millennial and Gen Z demographic, known for prioritizing their personal lives. This trend is now reflected in their remittance patterns,” a GME representative said.
“While the older generation primarily sent money home to support their families, we anticipate that saving for one’s future will become increasingly common.”
The study also shed light on the spending habits of foreign workers in South Korea. BC Card’s analysis of those with at least three months of transaction history within the past six months showed that those in their 20s and 30s accounted for 64% of card transactions and 57% of spending volume in the first half of this year.
Regionally, the highest year-over-year increase in consumer spending by foreign workers was observed in South Jeolla Province (29%), followed by South Gyeongsang Province (23%), and Gangwon Province (22%).
Within these regions, cities with higher concentrations of registered foreign residents, such as Yeongam County in South Jeolla, Gimhae in South Gyeongsang, and Wonju in Gangwon, saw the most significant spending increases.
The retail sector, particularly shopping and food and beverage purchases, experienced the highest growth in sales.
This shift in financial behavior comes as BC Card and GME have been working to cater to the specific needs of foreign workers.
In December of last year, the two companies entered into an agreement to provide specialized services for this demographic, including the launch of the GME Card, a prepaid card tailored for foreign workers in South Korea.
M. H. Lee (mhlee@koreabizwire.com)
