Kakao Bank's overseas remittance service tops 5 million transactions

Kakao Bank's overseas remittance service has surpassed 5 million transactions. Over the past two years, the bank waived incoming transfer fees on 200,000 transactions, saving customers a combined 880 million won ($647,000). Interest in the fee waiver is also growing among content creators who receive payments from abroad.

Kakao Bank announced Tuesday it would expand fee waiver benefits for its overseas account transfer service. The bank launched the service in July 2017 alongside its founding, cutting transfer costs to one-tenth of what traditional banks charged at the time and enabling customers to send and receive remittances through its mobile app 365 days a year. Cumulative usage crossed 5 million transactions in just over nine years since launch.

The basic remittance fee waiver applies to customers sending money from a Kakao Bank foreign currency account to an overseas account. The 4,900-won basic fee is waived regardless of the amount or number of transfers. The benefit, which took effect Aug. 12, has been extended through the end of the year.

The foreign currency account supports direct transfers in nine currencies — including the US dollar, euro and Japanese yen — to 19 countries. Customers can also purchase foreign currency in advance at a preferred exchange rate and send it when needed. The Kakao Bank Dollar Safe Box holds up to $100,000 and pays daily interest at an annual rate of 2.3 percent.

Incoming overseas transfer fees will be fully waived through Sept. 30 next year. The benefit, first introduced in October 2024, has been extended by one year and applies automatically to overseas remittances received via Kakao Bank's SWIFT code (KAKOKR22XXX).

Kakao Bank waived incoming transfer fees on a total of 200,000 transactions over the past two years, saving customers roughly 880 million won. Domestic receiving banks typically charge up to 10,000 won per incoming overseas transfer. Kakao Bank said it is the only domestic bank that waives the incoming overseas transfer fee unconditionally, based on foreign exchange fee disclosures published on the Korea Federation of Banks' consumer portal.

Use of the service is also rising among creators active on global content platforms. About 16,000 creator customers used Kakao Bank's incoming overseas transfer service over the past two years.

"We expanded the fee waiver benefits to repay the support of customers who have consistently used our overseas remittance service since our launch," a Kakao Bank official said. "We will continue to ease the fee burden on customers and improve the convenience of our foreign exchange services."