This Lunar New Year, the number of remittances sent abroad, including to South Korea, through free remittance services provided by Korean-American banks decreased, but the total amount increased. This trend is interpreted as a result of the strong dollar phenomenon, with the won-dollar exchange rate nearing 1,440 won, prompting more people to take advantage of the favorable rate for sending money home.

According to the Korean-American banking sector on the 30th, the number of Lunar New Year remittances processed by eight Korean-American banks operating in the western U.S. this year totaled 6,224 transactions. This represents a 7.8% decrease compared to last year's 6,771 transactions. However, the total amount of free Lunar New Year remittances this year reached
18
,
986
,
854
,
a
n
11.8
18,986,854,an11.816,981,053. As a result, the average remittance amount per transaction this year rose to
3
,
041
,
a
21.3
3,041,a21.3533) increase from last year's $2,508. (See chart)

Among major banks, Hanmi Bank was the only one to see an increase in both the number of transactions and the total remittance amount. Hanmi Bank recorded 1,464 transactions this year, a 6.6% increase from the previous year, and the remittance amount reached
4
,
806
,
979
,
a
34.2
4,806,979,a34.22,743,774). PCB Bank reported a 3.7% drop in transactions (206) but a 39.1% increase in remittance volume (
734
,
401
)
.
O
p
e
n
B
a
n
k
e
x
p
e
r
i
e
n
c
e
d
a
13.4
734,401).OpenBankexperienceda13.4827,102). CBB Bank maintained the same number of transactions as last year (91) but saw a 13.4% increase in remittance volume ($374,249).

On the other hand, Bank of Hope, the largest Korean-American bank, recorded a 18.6% decrease in remittance transactions (1,918) and a 9.9% drop in remittance amount ($6,489,481).

The decline in remittance transactions at the eight Korean-American banks this year reflects the sluggish economic conditions within the Korean-American community. However, the increase in remittance volume is attributed to the strong dollar effect, as the won-dollar exchange rate surged to 1,440 won in December last year amid heightened political uncertainty in South Korea, including the declaration of martial law. From the sender's perspective, the strong dollar reduces the burden, while recipients receive more won.

During the week of free remittance services, the won-dollar exchange rate ranged between 1,437.10 and 1,437.90 won, over 110 won higher than last year's Lunar New Year rate of around 1,325 won. Additionally, the rise in remittance volume is also influenced by the growing use of fintech and third-party financial apps for remittances, alongside traditional bank transfers.

Meanwhile, Korean-American banks offer free remittance services twice a year, ahead of Lunar New Year and Chuseok (Korean Thanksgiving). These services, which save customers
30
–
30–40 in fees, are highly popular among Korean-American clients. The banks also provide free remittance services to countries such as China, Hong Kong, Vietnam, and Taiwan.



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