[Ki Ha-young's Life Card] From June, Middle and High School Students Can Also Get Family Credit Cards Issued

From June, Middle and High School Students Can Also Get Family Cards
Monthly Limit Up to 500,000 Won
Industry Restrictions Include Transportation, Stationery, Convenience Stores, etc.

Is there anyone these days without at least one or two credit cards? In modern society, anyone can have a card if they set their mind to it. 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. In response, Asia Economy delivers diverse stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions of new cards, behind-the-scenes industry stories, and guides for card beginners.

Photo by Yonhap News

Starting this June, credit cards that middle and high school students can use will be introduced. These are in the form of ‘family cards’ that can only be used if parents set the usage categories and limits for their children. This is a result of the Financial Services Commission designating it as an innovative financial service to improve the practice of credit card transfer and lending, and to foster healthy spending habits among middle and high school students by granting special exceptions.

How to get one... Parents apply and issuance is non-face-to-face

The middle and high school student credit card is basically a family card issued to spouses, parents, or children based on the credit criteria of the primary member. Credit cards can only be issued to those who are legally adults (19 years or older) under civil law, but a special exception has been granted so that parents can apply for family cards for their children aged 12 or older.

To issue a middle and high school student credit card, parents must submit a copy of their real-name verification ID to the card company, authenticate themselves via mobile phone or public certificate, and enter the child’s information such as name, relationship, and mobile phone number. Once the application is received, the card company will issue the card after a phone call with the child.

Category and limit restrictions... Up to 500,000 KRW per month for use in transportation, convenience stores, etc.

There are concerns about misuse of cards by minors regarding the issuance of credit cards to middle and high school students. To address these concerns, the cards have restrictions on categories and limits. Usage is limited to categories such as transportation, stationery, bookstores, convenience stores, and academies where credit cards can be used. The limit is generally set at 100,000 KRW per month (50,000 KRW per transaction), but can be increased up to 500,000 KRW per month only if parents apply for it. Also, as it is an innovative financial service, it will be operated on a limited basis during the two-year special exception period.

Prepaid cards and check cards... A flood of financial products exclusively for youth

Since last year, various financial products targeting youth have been flooding the market. KakaoBank’s 'KakaoBank Mini' gained popularity with over 120,000 subscribers within three days of its launch. Kakao Mini can be seen as a prepaid card that can be charged with the desired amount and used, and only youth aged 14 to 18 can open an account.

Card companies such as Shinhan, KB Kookmin, Woori, and Hana Card have also consecutively launched check cards exclusively for youth. Since April last year, youth aged 12 to 17 can receive check cards with postpaid transportation card functions. The youth postpaid transportation card can be used without precharging the transportation card amount; the amount used is billed later on the check card payment date. However, issuance requires the consent of a legal guardian, and the monthly limit is also restricted to 50,000 KRW.

Middle and high school student credit cards: The fine line between innovation and side effects

Middle and high school student credit cards are scheduled to be launched by Shinhan Card and Samsung Card this June. Many may view allowing middle and high school students to use credit cards, which enable transactions on credit, with concern. Although prepaid cards and check cards with postpaid functions targeting youth are already on the market, credit cards are different. There is a risk of developing indiscriminate spending habits, using the convenience of credit cards without restraint.

However, considering that financial authorities have imposed restrictions on categories and limits to address these concerns, why not observe the service launch? Even within families, lending your credit card under your name to others is illegal, so using a card in your own name within the legal framework of a family card can actually help cultivate proper spending habits. The fine line that determines innovation or side effects depends on the person using it.