Seollal New Year's Money, Cash Only? Card Companies Also Offer 'Remittance Services'

Hyundai and Lotte Card Operate Overseas Remittance Service
Shinhan Card Launches Credit Card-Based 'MySonggeum' Service

[Asia Economy Reporter Ki Ha-young] Every year during Seollal, banks are crowded with people preparing New Year's money in crisp new bills. While giving cash as New Year's money along with good wishes for the new year is nice, if you are overseas or unable to meet during the holiday due to circumstances, using card company remittance services can be an alternative.

According to the industry on the 24th, card companies are successively launching overseas remittance services. This is because since last year, the government has allowed not only banks but also securities firms and card companies to provide overseas remittance services.

Hyundai Card was the first among card companies to introduce an overseas remittance service in April 2018. This service, in partnership with Shinhan Bank, shortened overseas remittance time to a maximum of three days and lowered the remittance fee to 3,000 KRW per transaction.

Last month, Lotte Card launched the 'Lotte Card Overseas Remittance' service, which allows easy foreign currency remittance via a mobile app. It operates on an independent system rather than through bank partnerships, with fees ranging from 3,000 KRW to 5,000 KRW per transaction depending on the country. The advantage of card company overseas remittance services is that their fees are lower than those of banks. KB Kookmin Card is also preparing to launch a service.

Shinhan Card does not offer an overseas remittance service, but operates the My Remittance service, which allows peer-to-peer transfers using a credit card even if there is no balance in the account. Through the digital payment platform Shinhan PayFAN, users can send up to 100,000 KRW per day and 500,000 KRW per month. After being selected as an innovative financial service by the Financial Services Commission in April last year, the service started on October 1. Since then, the My Remittance service surpassed 100,000 registered customers and a cumulative remittance amount of 3 billion KRW in just three and a half months.

To celebrate Seollal, Shinhan Card is holding an event for My Remittance users. First, they produced special Seollal envelopes with the phrase "Happy New Year!" Users can send and receive New Year's money using these envelopes via My Remittance on Shinhan PayFAN. This reduces inconveniences such as cash withdrawal and envelope purchase that occur when giving money physically.

Additionally, a special event is being held for customers using the My Remittance Seollal exclusive envelopes. From the 22nd until the 31st, among customers who send 10,000 KRW or more through the My Remittance Seollal envelopes, the first 1,000 people will receive a 5,000 KRW voucher for CU convenience stores.