A South Korean phone-based money transfer company has partnered with Wing Specialized Bank to tap into remittance services for Cambodians living and working abroad.
GmoneyTrans signed a cooperative agreement yesterday with Wing and hopes to launch the remittance service by the middle of next month, according to the company’s chief executive.
Kim Jong Moo, CEO of GmoneyTrans, said that the company’s service fees will be 70 per cent lower than current operators that typically charge between 4 to 5 per cent commission and take two or three days for funds to be made available to their recipient.
“If workers transfer $1,000 to relatives here through our service, they can pay less than $10,” he said, adding that banks generally charge nearly $40 for that same amount.
“[The service] will be more convenient, more innovative and will be a cost-saving network,” he said.
According to Jong Moo, there are nearly 45,000 workers in South Korea that send upwards of $500 million between the two countries each year.
To use the service, customers with existing bank accounts in South Korea must download the mobile app and register their account information. Once the sender sends the money to a confirmed account in Cambodia, recipients can pick up the money from any of the 4,000 Wing agents nationwide.
“The new service will not only help provide an easy way for Cambodian workers in Korea to send money home, but will also help them keep close relationships with their relatives,” said Jojo Malolos, CEO of Wing Specialized Bank.
Ministry of Labour spokesman Heng Sour welcomed the news of the cost-cutting service and added that nearly 8,000 Cambodian workers migrate to South Korea each year, earning on average a salary of $1,200 a month.
He estimated that some 43,000 labourers sent around $300 million between the two countries last year using traditional remittance services.
“If the new service can provide lowers costs, it is truly a great help for our workers in Korea,” he said.
So Phonnary, executive vice president of Acleda Bank, said that Acleda has partnered with numerous banks in South Korea and has negotiated a special rate for Cambodian workers of just 0.17 per cent of the transaction amount.
However, she said that due to Acleda Bank’s limited footprint in South Korea, the majority of the bank partners are inaccessible to Cambodian migrant workers.
“Cambodian workers in Korea are spread across the whole country, and the banks we have partnered with can’t reach them all,” she said.
“Having an easier service for workers to transfer money is good because they will have more choices.”