S.Korean Credit Card Firms Woo Relief Money To Attract More Customers

Credit card firms in South Korea are wooing clients with promos to secure transactions for the emergency relief money that the government will give to 21.7 million households nationwide.

Shinhan Card made a 10,000 won "cashback" available to customers who spent over 10,000 won with its credit cards in using the Gyeonggi Province's anti-disaster basic income.

Samsung Card has returned up to 10,000 won each to customers who would resume their credit cards for spending the province's relief fund.

Hana Card is offering a 30 percent cash back for those who used its credit cards for other purposes other than Gyeonggi Province's anti-disaster basic income.

Meanwhile, Woori Card has given mobile vouchers for Starbucks' Americano coffee to clients who used its credit cards to apply for the anti-disaster income.

According to a credit card industry official, the relief money will help them engage previous customers to resume using their card and attract new customers.

The Ministry of the Interior and Safety said that 1 million won would be given to households with four or more members, 800,000 won to those with three members, 600,000 won for those with two, and 400,000 won to those living alone.

The funding can be provided through credit and debit cards, not only through gift vouchers and prepaid cards by local governments.

Citi and other card companies that don't have cash-like point systems were excluded from being used for emergency relief money.

Card firms are experiencing difficulties in fundraising with the corporate bond market slowing down by the COVID-19 pandemic.