[Gi Ha-yeong's Daily Card] "No Postpaid Transportation Card Charging for Teens"…Get Your Postpaid Transportation Card Now

Issued from the 27th at Shinhan, KB Kookmin, Woori, NH Nonghyup Cards, and IBK Industrial Bank
Legal guardian consent form required for issuance
Monthly usage limit of 50,000 KRW

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, from introducing new cards to industry behind-the-scenes and guides for card beginners.

"Insufficient balance."

Sometimes, you see students in school uniforms getting off the bus with embarrassed expressions. This is a happening caused by insufficient bus card recharge amounts. Such incidents are expected to decrease, as from the 27th, middle and high school students will be able to get postpaid transportation function check cards with discounted fares.

◆From the 27th, issuance available at 5 companies including Shinhan and KB Kookmin= Now, 2.83 million youths aged 12 to under 18 nationwide can use postpaid transportation cards to use public transportation such as buses and subways without needing to recharge. Until now, middle and high school students under 18 had to recharge transportation cards every time they used public transport, but financial authorities have improved the system to resolve this inconvenience.

Accordingly, from the 27th, Shinhan, KB Kookmin, Woori, NH Nonghyup Cards, and IBK Industrial Bank will issue postpaid transportation cards to youths. Other card companies will sequentially enable issuance of youth postpaid transportation cards starting in May: SC First Bank, Gyeongnam Bank, and Busan Bank from May; Hyundai and Lotte Cards, Jeonbuk and Gwangju Banks from June; Samsung and Hana Cards and Daegu Bank from July.

For postpaid transportation cards, differentiated child and youth fares are applied based on the birthdate information entered on the card. When the user becomes an adult, adult fares are automatically applied, so the card can continue to be used without reissuance. Any youth aged 12 to under 18 with legal guardian consent can be issued the card, but to prevent misuse and manage usage limits, only one card can be issued per person across the entire card industry.

◆Application requires ID plus legal guardian consent form and resident registration certificate, etc.= To apply, visit any bank or card company branch nationwide, fill out the youth postpaid transportation card application and legal guardian consent form, and submit other required documents. Required documents include the youth’s ID, legal guardian’s ID (resident registration card, driver’s license, passport, etc.), resident registration certificate or family relation certificate, and detailed or specific basic certificate for the youth.

Some card companies allow youth postpaid transportation card applications via their main phone lines. Other required documents can be submitted by fax or email. Detailed application methods should be confirmed with each card company.

If you visit a branch with the required documents, proxy issuance through a legal guardian is also possible. Financial authorities plan to promote proxy issuance by legal guardians online via websites in the future.

The need for legal guardian consent beyond identity verification is due to the postpaid transportation payment system. The youth postpaid transportation payment function is added to check cards, not credit cards, and sums the transportation amounts used over a period to withdraw from the linked payment account on a set date. Unlike general check cards where payments are made within the linked account’s balance, this is similar to credit card payment methods. Therefore, legal guardian consent is required for issuing cards to minors and for proxy payment.

◆Monthly usage limit 50,000 KRW, card use suspended if overdue= The usage limit is 50,000 KRW per month. This amount considers youths’ public transportation usage levels and the possibility of nonpayment. However, some card companies allow youths to apply separately to settle the used 50,000 KRW before the payment date through the withdrawal account and then use an additional 50,000 KRW until the existing payment date.

Since the maximum usable amount is limited to 50,000 KRW, even if the postpaid transportation card payment is overdue, there are no disadvantages other than overdue interest. However, card use will be suspended until overdue payments are settled, and legal guardians who agreed to proxy payment may be asked to repay. Also, youth postpaid transportation cards cannot be transferred to others under Article 15 of the Specialized Credit Finance Act, and violating this may result in criminal penalties, so caution is required.