Korean internet-only bank, Toss Bank, on Thursday rolled out its first foreign exchange service, pledging not to charge users any fees for converting foreign currencies.
Under the new scheme, all users who open a foreign currency account on its banking app can exchange 17 foreign currencies in real-time and around the clock, without paying any fees for a lifetime.
Until now, local banks have sometimes offered a reduction in or removal of currency conversion fees as part of special promotions. But Toss is the first bank to remove the fees indefinitely.
“Just as Toss liberated the flow of money by making all transactions free, Toss Bank aims to break down the boundaries of the Korean won and other currencies by removing conversion fees,” said Kim Seung-hwan, the product owner of the foreign exchange service at Toss Bank, at a press conference held in Seoul that day.
Currently, commission fees of between 1.5 and 13 percent are charged on currency conversion for individuals at local commercial banks, with the fees shooting up as high as 18 percent at airports.
There is no deposit limit for Toss’ foreign currency account. The monthly limit for conversions is set at $300,000.
Toss Bank said it plans to introduce overseas transaction services both for individuals and corporations soon.
“Let me just say that we are confident enough to declare ‘no fees for a lifetime’ in beginning the service,” Toss Bank CEO Hong Min-taek said during Thursday’s event. “Our service will enhance accessibility to currency conversion services to allow more people to own foreign currencies and help ease the money flow.”
Speaking about Toss Bank’s performance in the fourth quarter, Hong anticipated the company will continue to see a profit.
The company saw its first quarterly surplus in the third quarter last year since its launch in October 2021, logging a net profit of 8.6 billion won ($6.42 million).
“Not only have we turned a profit, but the amount itself is increasing at a significant pace, and we expect this uptrend will continue,” the CEO added.