South Korea Remittance Market Overview, 2029

South Korea is one of the largest remittance senders in Asia, with its remittance market playing a vital role in the broader regional economic context. The country has a significant number of migrant workers, particularly from Southeast Asia, including the Philippines, Vietnam, and Indonesia, who send money back to their families. These remittances are crucial for supporting household incomes, funding education, healthcare, and infrastructure projects in the migrants’ home countries. The remittance market in South Korea is characterized by high volumes of both inward and outward remittances, with the majority of the money flowing outward due to the large foreign workforce in the country. The role of remittances in South Korea's economic framework is significant, as they contribute not only to the financial well-being of individual families but also to the economic growth of the countries receiving the funds. While traditional methods such as banks and money transfer operators (MTOs) have been the primary means of sending remittances, there has been a rapid shift toward digital solutions in recent years. The growth of mobile banking, digital wallets, and online remittance platforms has transformed the landscape, providing a more efficient, cost-effective, and faster means of sending money. This shift is in line with the broader global trend of digitalization in the financial services sector, with South Korea being one of the countries leading the charge. This digital transition is particularly important given South Korea's highly connected population and advanced technological infrastructure, which have fostered the widespread adoption of mobile payment systems and online remittance services. The market has thus seen a sharp increase in the number of remittances being sent through digital platforms, providing more accessible and affordable options for migrant workers.

According to the research report "South Korea Remittance Market Overview, 2029," published by Bonafide Research, the South Korea Remittance market is expected to reach a market size of more than USD 19.74 Billion by 2029. According to recent studies, South Korea is one of the top countries in Asia for remittance outflows, with billions of dollars being sent to various countries, particularly in Southeast Asia. These remittances have a direct impact on the economies of the receiving nations, helping to reduce poverty and boost the standard of living for millions of people. The remittance market in South Korea is heavily influenced by the country's labor market, with a high number of foreign workers, particularly in industries such as construction, manufacturing, and domestic work. These workers often come from countries where economic conditions are more challenging, and sending money back home is crucial to their families' financial survival. Over the years, the South Korean government has implemented policies aimed at regulating the remittance market, reducing the cost of sending money, and promoting financial inclusion. The government’s efforts to modernize remittance infrastructure and streamline financial processes have contributed to the growing shift from traditional bank transfers and MTOs to digital platforms. The rise of mobile wallets, digital remittance services, and online money transfer options has had a major impact on this shift. These services are particularly attractive due to their lower transaction fees, faster transfer speeds, and ease of use. Popular digital platforms, such as KakaoPay, Naver Pay, and Toss, have transformed how remittances are sent, providing users with an easy, secure, and low-cost means of transferring funds. The convenience of using these mobile and online platforms has made them the preferred choice for many migrant workers in South Korea, especially those from younger generations who are already familiar with mobile payments.

The remittance market in South Korea is divided into two key segments: inward remittances and outward remittances. Inward remittances refer to money sent into South Korea, primarily by overseas Koreans, including students, expatriates, and businesses. While these remittances are not as large in volume compared to outward remittances, they still contribute to South Korea's overall remittance market. Many Koreans living abroad send money back to their families to support various needs such as education, healthcare, and housing. Outward remittances, on the other hand, are far more significant, driven by the large number of foreign workers in South Korea. These workers typically come from countries with lower wages and are employed in sectors such as construction, agriculture, and domestic services. Sending remittances back home is a primary means of supporting their families, and the financial support they provide is critical to the economic stability of their home countries. These remittances help alleviate poverty, fund healthcare, education, and business development, and improve the overall well-being of the recipients. The remittance flow from South Korea is crucial for several Southeast Asian nations, as it provides an essential source of foreign income that supports economic development. Both inward and outward remittances are facilitated by a range of service providers, including banks, money transfer operators, and digital platforms. The competition among these providers, particularly in the digital space, has led to lower transaction fees, faster processing times, and more user-friendly platforms, improving the overall remittance experience for consumers.

The remittance market in South Korea is influenced by the types of platforms used for money transfers, which are segmented into non-digital and digital categories. Non-digital platforms include traditional banking institutions and money transfer operators (MTOs). While these methods are secure and reliable, they are often associated with higher transaction fees and longer transfer times. Banks, being the conventional choice for remittance services, offer a secure way to send money but tend to charge relatively higher fees compared to digital alternatives. MTOs like Western Union and MoneyGram also dominate the non-digital segment, providing transfer services across borders with extensive agent networks and physical locations. These services have been important, particularly for those who do not have easy access to digital technologies. However, the digital remittance market has been rapidly growing in South Korea, with digital platforms becoming increasingly popular due to their convenience, lower costs, and speed. Digital platforms like KakaoPay, Toss, and Naver Pay have transformed the remittance space, allowing users to send money directly from their smartphones, making the process simpler and quicker. The growth of mobile payment systems and digital wallets has enabled users to send money instantly, with low fees and a streamlined user experience. With the increasing reliance on smartphones and internet access, digital platforms are expected to dominate the South Korean remittance market, continuing to make remittance services more accessible, efficient, and affordable for users.

The remittance market in South Korea can also be categorized by the channels through which money is transferred. These channels include banks, money transfer operators (MTOs), mobile banking and online platforms, and other emerging options. Banks, while secure and trusted, often have higher fees and slower processing times compared to newer alternatives. Money transfer operators such as Western Union and MoneyGram are widely used due to their extensive networks and ability to facilitate cross-border transfers. However, with the rise of digital technologies, many consumers are turning to mobile banking and online platforms for remittances. Services like KakaoPay, Toss, and Naver Pay allow users to send money quickly and cheaply, often with fewer fees than traditional methods. These platforms are extremely popular among younger consumers, who are familiar with mobile payments and prefer the convenience and speed of digital transfers. Other emerging options include peer-to-peer (P2P) platforms and cryptocurrency-based transfers, which are gaining traction due to their low fees and real-time processing capabilities. As South Korea continues to embrace digital financial solutions, the remittance market is expected to evolve, with new channels and services becoming available to cater to the growing demand for faster, cheaper, and more convenient money transfers. The competition among service providers is driving innovation and improving the overall remittance experience for consumers, ensuring that South Korea remains a leading player in the global remittance market.




Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Remittance Market with its value and forecast along with its segments
• Region & country wise Remittance market analysis
• Application wise Remittance distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Types
• Inward remittance
• Outward remittance

By Platform
• Non-Digital
• Digital

By Channel
• Bank
• Money Transfer Operators (MTO)
• Mobile banking/Online platform
• Others

By End User
• Business
• Personal

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.