Middle School Children Also Eligible for Credit Cards... Financial Services Commission Designates 2 Innovative Financial Services

Only available when setting usage industries, limits, etc.

[Asia Economy Reporter Park Sun-mi] Starting in June, middle and high school students aged 12 and older will be able to receive credit cards (family cards) upon their parents' application.

The Financial Services Commission announced on the 27th during its regular meeting that it designated two innovative financial services. With this, the total number of accumulated innovative financial services reaches 137.

The two services are family card services for minor children provided by Samsung Card and Shinhan Card. These services allow parents to set restrictions on their minor children's (middle and high school students aged 12 and older) card usage categories and limits, and issue credit cards to their children non-face-to-face upon the parents' application. The card usage categories include transportation, stationery, bookstores, convenience stores, and academies, with limits generally set at KRW 100,000 per month (KRW 50,000 per transaction), which can be increased up to KRW 500,000 per month upon the parents' request.

The service will be launched in June.

Parents submit a copy of their real-name verification ID, verify their identity via mobile phone or public certification, and enter the child's information (name, relationship, mobile phone number, etc.). The card company then issues the card after a phone call with the child.

Credit card companies can only issue credit cards to individuals aged 19 or older under civil law, but an exception has been granted to allow family cards to be issued to middle and high school children aged 12 and older upon parental application.

During the Innovative Financial Services Review Committee's evaluation, concerns about misuse of cards by minors were raised; however, considering that ▲ card usage is within the parent's credit limit and ▲ restrictions on usage categories and limits are in place, the service will be tested in a limited manner during a two-year special period.

The Financial Services Commission stated, "By expanding the family card issuance target to those aged 12 and older and limiting usage to small payments, we aim to enhance convenience in financial transactions, improve the practice of credit card transfer and lending, and expect middle and high school students to develop sound financial transaction and spending habits."