South Korean banks drop barriers in private banking market

Woori, Shinhan, and Korea Exchange banks are lowering the barriers for their private banking services to win back potentially more affluent customers.

Seo In-seok, senior manager of Woori Bank's Yeouido branch, who is in charge of Royal Customers division, has sought to lure back customers who canceled their accounts in the wake of the global financial crisis.

“Especially, we focus on those who own about 100 million won ($86,000), because they are sensitive to interest rates and can easily to switch to other banks,” Seo said in a report in Korea Times.

Kim Hyung-sang, deputy general manager of the business department of Kookmin Bank's Yeouido branch, agreed on the importance of the bracket.

"Customers who have 200 million won ($173,000) to 500 million won ($432,000) are the most sensitive to rates. They are the main target of business,'' Kim said.

Shinhan Bank recently lowered its barrier to 100 million won from 200 million won. Korea Exchange Bank (KEB) is allowing households that own more than 100 million won to get the private banking service.