[비즈한국] Amidst fierce competition in foreign currency services within the financial sector, Shinhan Bank is stepping up its competitiveness by opening 'SOL Travel Lounges.' Having withdrawn its branches and currency exchange offices from Incheon International Airport, Shinhan Bank is now expanding its urban exchange presence by installing foreign currency ATMs at airport railroads and establishing SOL Travel Lounges. With financial institutions recently launching cards specialized for overseas travel and offering zero-fee currency exchange, attention is focused on whether Shinhan Bank will take the lead.
On the 12th, Shinhan Bank opened the first 'SOL Travel Lounge' in Korea where users can withdraw 10 different currencies. In addition to the four standard currencies—US Dollars (USD), Japanese Yen (JPY), European Euros (EUR), and Chinese Yuan (CNY)—the lounge's foreign currency ATMs support six others: Thai Baht (THB), Philippine Peso (PHP), Vietnamese Dong (VND), Singapore Dollar (SGD), Taiwan Dollar (TWD), and Australian Dollar (AUD). Among commercial banks, Shinhan Bank's SOL Travel Lounge is the only one equipped with foreign currency ATMs capable of handling all 10 currencies.
Shinhan Bank has opened SOL Travel Lounges at Seoul Station and in Yeoksam-dong, Gangnam-gu (Nonhyeon-dong branch). The Seoul Station branch is located in front of the City Airport Terminal on the basement level 2 of the Airport Railroad, while the Nonhyeon-dong branch is located in a building in front of Exit 5 of Sinnonhyeon Station. Shinhan Bank recently also installed a foreign currency ATM at the basement level 2 of Hongik University Station on the Airport Railroad (between Exits 5 and 7).
On the 13th, BizHankook visited the SOL Travel Lounge at Seoul Station to personally exchange Korean Won for Japanese Yen. The foreign currency ATM in the lounge is a new model that supports three services: mobile-requested currency withdrawal, instant currency exchange, and a dedicated foreign currency withdrawal service for airline crew members.
The reporter had requested an exchange of 15,000 Japanese Yen the previous day (the 12th) via the 'SOL-convenient Currency Exchange' feature in Shinhan Bank's 'SOL Bank' app. Upon selecting 'Mobile Requested Currency Withdrawal' on the ATM screen, a message appeared asking to insert a 'cash withdrawal card.' After verifying identity via the SOL Travel Check Card and selecting the requested yen details and denominations, the 15,000 yen was dispensed immediately.
It is also notable that the four basic currencies—Dollar, Euro, Yen, and Yuan—can be exchanged instantly without prior application. By applying the exchange rate at the time of withdrawal, users can exchange money directly from their Won-denominated accounts using any card capable of cash deposits and withdrawals. The machines are available from 6:00 AM to 11:30 PM, allowing customers to use the lounge when they urgently need these currencies.
Currently, withdrawing the six additional currencies, such as the Thai Baht, is only possible at the new ATMs in the SOL Travel Lounge. According to Hyosung TNS, the company that develops and manages the ATMs, the number of these new machines is expected to increase to more than 20 in the future.
Shinhan Bank is expanding its specialized currency exchange channels through foreign currency ATMs as it moves away from Incheon International Airport, which had been its key hub this year. Shinhan Bank, which had been present since the airport opened in 2001, failed to win the bid for banking operations at the end of 2023 and has since withdrawn all branches, exchange offices, and ATMs from the airport. KB Kookmin Bank will operate in the space vacated by Shinhan Bank for up to 10 years until December 2033.
Shinhan Bank plans to expand SOL Travel Lounges to locations outside of city airport terminals or stations to increase the accessibility of its exchange services. A Shinhan Bank official stated, "Internal surveys showed that the Nonhyeon-dong branch location is a key hub with high demand for currency exchange," adding, "We will continue to expand SOL Travel Lounges, focusing on major exchange hubs."
Competition in foreign exchange services in the financial sector began this January when Toss Bank launched a foreign currency account offering 'lifetime free currency exchange.' This means that not only are there no fees when buying or selling foreign currency, but customers are also exempt from fees for overseas payments or cash withdrawals when using a check card linked to the foreign currency account. As Toss Bank opened the door to zero-fee currency exchange, commercial banks have also rushed to launch overseas travel-specialized cards with fee benefits.
Shinhan Bank joined the foreign exchange service competition quickly by launching the 'SOL Travel Check Card' in February this year. Released in collaboration with Shinhan Card, this card offers zero currency exchange fees for 30 types of currencies and a 50% discount on fees when converting remaining foreign currency back to Korean Won. Unlike Toss Bank, which offers 0% interest, Shinhan Bank differentiates itself by providing 2% annual interest on US Dollars and 1.5% annual interest on Euros held in the linked foreign currency account. With the SOL Travel Check Card attracting over 300,000 subscribers within just one month of its launch, Shinhan Bank also released a credit card version in July.
Shinhan Bank has also entered into a strategic partnership with its industry competitor, Kakao Bank323410. On June 25, Kakao Bank launched a new foreign exchange service called 'Dollar Box' in partnership with Shinhan Bank. The Dollar Box allows users to withdraw their stored dollars without domestic ATM fees, and these withdrawals can be made at Shinhan Bank's foreign currency ATMs.
Currently, withdrawals are only possible at five ATMs in the Seoul metropolitan area, but as Shinhan Bank expands its network of foreign currency ATMs, the number of withdrawal locations for Kakao Bank's Dollar Box is also expected to increase. Although the new ATMs are equipped with the relevant functions, it is reported that discussions between the two companies are still ongoing. An industry insider noted, "As both companies' foreign exchange services gain popularity and attract subscribers rapidly, their convenience is high, suggesting a significant synergy effect."