KUALA LUMPUR - The International Organization for Migration (IOM) has signed a memorandum of understanding with TelcoCB to improve migrants’ access to formal banking and financial services in the Republic of Korea.

The agreement was signed on January 9 as part of efforts to support migrants who face difficulties accessing financial services due to limited or non-existent credit histories, as posted by IOM on January 12.

According to the Korean Immigration Service, there were about 2.8 million migrants in the country as of October 2025, accounting for roughly five per cent of the total population.

Despite their active economic participation, many migrants continue to face barriers in accessing essential services such as opening bank accounts, building credit profiles, obtaining mobile phone subscriptions, making housing deposits and carrying out digital payments.

These challenges are largely linked to the absence of alternative credit assessment mechanisms that recognise migrants’ economic activity.

The MoU was signed by IOM Deputy Director General for Management and Reform SungAh Lee and TelcoCB chief executive officer Ho-jun Jang in support of the South Korean government’s efforts to strengthen migrant integration.

Under the partnership, IOM will provide guidance on international standards and policy frameworks related to migrant protection, economic inclusion and access to essential services.

This includes promoting fair access to banking and remittance services, as well as safeguards against financial exclusion.

TelcoCB, meanwhile, 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.

“While this is a global issue, the Republic of Korea’s position as a digital leader presents strong potential for practical, technology-driven solutions,” Lee said.

Lee said digital innovation can significantly improve quality of life and that the partnership is expected to help migrants live more dignified and stable lives.

The cooperation aims to reduce information gaps and improve migrants’ access to financial and other essential services.

Both organisations will explore the development of digital tools to 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,” the IOM said.

“This collaboration is significant in that it seeks to explore a new model that leverages digital technologies to enhance migrants’ access to information and financial services, while providing tangible support for upholding human dignity and promoting social integration,” Jang said.

TelcoCB is a joint venture formed by South Korea’s three major mobile network operators — SK Telecom, LG U+ and KT — together with Korea Credit Bureau and SGI Seoul Guarantee Insurance.

The company provides non-financial credit assessment services using telecommunications data to support individuals with limited financial histories.

Its alternative credit assessment service, EQUAL, has been designated an innovative financial service by South Korea’s Financial Services Commission.