In South Korea, there are three main types of banks: Primary institutions, secondary, and tertiary.
Each type of bank has its own unique features and serves different segments of the population, contributing to a diverse and robust banking system in the country.
Primary institutions are the major commercial banks in South Korea that provide a wide range of financial services to both individuals and businesses. These banks, including KEB Hana Bank, Shinhan Bank, and KB Kookmin Bank, have a strong presence in the market and offer various products such as savings accounts, loans, credit cards, and investment services. They have extensive branch networks and advanced digital banking platforms, making it convenient for customers to access their services.
Secondary banks, also known as specialized banks, focus on specific areas of financial services. These banks cater to niche markets and provide specialized products and services. For example, the Industrial Bank of Korea specializes in industrial financing and offers loans and financial support to businesses in the manufacturing and industrial sectors. The Korea Development Bank, on the other hand, focuses on providing financing for infrastructure development and plays a key role in supporting the country’s economic growth.
Tertiary banks, on the other hand, are smaller regional banks that primarily serve local communities. These banks play a crucial role in providing banking services to rural areas and smaller towns where access to financial services may be limited. They often have a strong connection to the local community and place emphasis on personalized customer service. The Busan Bank and Gwangju Bank are examples of tertiary banks in South Korea that serve their respective regions.
