The International Organization for Migration (IOM) has signed a Memorandum of Understanding (MoU) on Friday, 9 January, with TelcoCB to improve migrants' access to formal banking and financial services in the Republic of Korea, particularly for those with limited or no credit history.
According to the Korean Immigration Service, as of October 2025 there are approximately 2.8 million migrants in the country, accounting for about 5 per cent of the total population. Despite their active participation in the economy, many migrants continue to face challenges in accessing formal banking services and essential services needed for daily life - such as opening a bank account, building a basic credit profile, obtaining mobile phone subscriptions, making housing deposits and digital payments - largely due to the lack of alternative credit assessment mechanisms that recognize their economic activity.
In support of the Government of the Republic of Korea's efforts to strengthen the integration of migrants, the MoU was signed by IOM Deputy Director General for Management and Reform, SungAh Lee, and TelcoCB Chief Executive Officer, Ho-jun Jang. Under this partnership, IOM will provide guidance on international standards and policy frameworks related to migrant protection, economic inclusion and access to essential services, such as fair access to banking, remittance services and safeguards against financial exclusion, while TelcoCB will contribute its expertise in financial systems and data technology.
"Migrants living in the Republic of Korea continue to face challenges in accessing financial services, including banking," said DDG Lee. "While this is a global issue, the Republic of Korea's position as a digital leader presents strong potential for practical, technology-driven solutions. Digital innovation can significantly improve quality of life, and this partnership is expected to help migrants live more dignified and stable lives."
This cooperation seeks to reduce information gaps and improve access to financial and other essential services. Together, the two organizations will explore the development of digital services that help migrants navigate financial and administrative systems more easily and independently. These efforts will promote better social integration of migrants through innovative, technology-based solutions.
"This collaboration is significant in that it seeks to explore a new model that leverages digital technologies to enhance the migrants' access to information and financial services, while providing tangible support for upholding human dignity and promoting social integration," said Jang.
TelcoCB is a joint venture established by the Republic of Korea's three major mobile network operators - SK Telecom, LG U+, and KT - together with Korea Credit Bureau (KCB) and SGI Seoul Guarantee Insurance (SGI) as strategic investors. The company provides non-financial credit assessment services using telecommunications data for individuals with limited financial histories, contributing to the expansion of financial inclusion. TelcoCB's alternative credit assessment service, EQUAL, has been designated an innovative financial service by the Financial Services Commission.
