[Gi Ha-Young's Life Card] 'Unconditional Discount vs Repeated Discount'... Which Card Offers Greater Benefits?

Hyundai Card Launches New Alphabet Card 'Hyundai Card Z' After 8 Years
Focused on Family, Workplace, and Ontact, Emphasizing Recurring Discounts

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. In response, Asia Economy delivers diverse stories related to cards?an inseparable part of our consumer life?through its weekly 'Cards in Daily Life' segment, covering everything from new card introductions and industry behind-the-scenes to guides for card beginners.

Unconditional discounts vs. repeated discounts. As card benefits have become more standardized, the popularity of 'unconditional cards' that offer discounts or rewards without monthly spending requirements or limits continues.

According to Card Gorilla, the largest credit card specialist site in Korea, the most popular credit card in the first quarter of this year was the representative unconditional card, 'Hyundai Card Zero Edition2 Discount Type.' This card offers a 0.7% discount on all spending without any monthly spending conditions, and up to 1.5% discount on essential daily categories such as online simple payments, large discount stores, and convenience stores. There is no reward limit, and the annual fee is relatively low at 10,000 KRW. The second place also went to 'Shinhan Card Deep Drip,' which provides 0.7% rewards at domestic and international merchants without monthly spending or reward limits. The general consensus is that unconditional cards are advantageous in terms of benefits, especially for young adults with modest spending or those unfamiliar with their consumption patterns.

Amid the popularity of these unconditional cards, Hyundai Card has launched a new alphabet card product, 'Hyundai Card Z,' for the first time in eight years. It focuses benefits on three areas with high customer usage frequency: 'Family,' 'Workplace,' and 'Ontact' (online contact). This product targets customers who want to receive more benefits in frequently used areas tailored to their lifestyle. With an annual fee of 10,000 KRW, it offers discounts of 30,000 KRW for monthly spending over 400,000 KRW and 45,000 KRW for spending over 800,000 KRW.

Hyundai Card Z Specializes in Family, Workplace, Ontact... Up to 45,000 KRW Discount

'Hyundai Card Z Family' is specialized for family living expenses discounts. It offers a 10% discount when using 14 major online shopping brands, key large marts, and delivery applications, and provides a 100 KRW per liter discount at four major gas stations. Additionally, customers can enjoy a 7% discount when setting up automatic payments for communication fees and utility bills (apartment management fees, city gas charges).

'Hyundai Card Z Work' offers specialized benefits aligned with commuters' routes. It provides a 50% discount at coffee shops like Starbucks and Paul Bassett, and a 10% discount on payments at major convenience stores, public transportation, and taxis. Using online simple payment services such as Naver Pay and Samsung Pay grants a 10% discount, and automatic payment of mobile communication fees offers a 7% discount.

Lastly, 'Hyundai Card Z Ontact' is designed for the Ontact generation enjoying a non-face-to-face lifestyle. It offers a 70% discount on membership fees for major online shopping memberships like Naver Plus Membership and Coupang Rocket Wow, and a 30% discount on digital content services such as Netflix and YouTube Premium. Additionally, it provides a 50% discount when using coffee shop smart order services and a 10% discount on online simple payments and delivery app usage.

Discounted Payment Amounts Excluded from Monthly Spending... Check Benefit Conditions

One point to note is that for all three cards, the payment amount including the discount is excluded from the monthly spending calculation. For example, to receive the maximum 30,000 KRW discount with 'Hyundai Card Z Family' at a monthly spending of 400,000 KRW, you actually need to spend close to 800,000 KRW. This means meeting the monthly spending requirement can be more challenging than expected. There is also a risk that spending may increase more than anticipated to receive the discount.

Returning to the initial question, between unconditional discounts and repeated discounts, repeated discounts provide greater monetary benefits. If you spend an average of 800,000 KRW per month, frequently use large discount stores, delivery apps, and refuel often, the 30,000 KRW discount from 'Hyundai Card Z Family' will be more beneficial than the 0.7% discount from 'Hyundai Card Zero Edition2 Discount Type.' However, keep in mind that meeting the monthly spending requirement to receive the maximum discount can be more difficult than expected because payment amounts including discounts are excluded from the monthly spending calculation. Generally, the larger the benefit amount, the more complex the benefit conditions. Ultimately, to maximize card benefits, it is more important to thoroughly understand your spending scale and patterns than to simply choose between unconditional and repeated discounts.