BNK Busan Bank Signs MOU with Lao Development Bank for "Seasonal Worker Remittance Project"

Signing Ceremony Held on the 29th...
Reducing Fees Through Bulk Remittance in Korean Won
Improving Income and Security for Lao Workers
Boosting Local Economies in Korea’s Rural Areas

BNK Busan Bank (President Seongbin Bang) signed a memorandum of understanding (MOU) with the Lao Development Bank on August 29 in Vientiane, Laos, regarding the "Lao Seasonal Worker Remittance Project."

On the 29th, BNK Busan Bank signed a memorandum of understanding with the Lao Development Bank regarding the "Lao Seasonal Worker Remittance Project" in Laos (from the first row, left: BNK Busan Bank President Seongbin Bang, Lao Development Bank Chairman Sichithon Tepasi). Provided by BNK Busan Bank

This agreement marks the first time a domestic financial institution has established a structure for collecting funds in Korean won from foreign non-residents and remitting them abroad in bulk. It is significant as an innovative financial model that simultaneously reduces remittance fees and streamlines administrative procedures compared to traditional individual remittance methods.

Lao seasonal workers, who have been sending a portion of their monthly wages back home while working in Korea’s rural and fishing communities, have faced the problem of excessive international remittance fees due to the individual remittance system.

In response, the newly introduced "Lao Seasonal Worker Remittance Project" allows workers to pool their deposits into a Lao Development Bank account at Busan Bank, which are then remitted collectively to Laos. This structure, similar to a group purchase system, can significantly reduce remittance fees.

Furthermore, the project strictly complies with Lao government regulations and utilizes official financial networks to ensure the safety and transparency of remittances.

Additionally, Busan Bank plans to support group accident insurance enrollment for Lao seasonal workers to provide a social safety net against various accidents that may occur in rural workplaces, thereby ensuring stable working conditions.

Through this agreement, Lao workers are expected to increase their income and secure a stable livelihood, while Korea’s rural areas are anticipated to benefit from boosted domestic consumption.

President Seongbin Bang of Busan Bank stated, "This agreement goes beyond a simple financial partnership to establish a global financial model that delivers tangible benefits to both countries. We will continue to work closely with the Lao Development Bank to contribute to the joint development of both nations and to create new, innovative financial models."