[Gi Ha-yeong's Life Card] How About Credit Cards for Middle and High School Students Instead of 'Eomka'?

Shinhan and Samsung Card Launch Family Card Service for Teenagers
Shinhan Card Releases 'MyTeens'... GS25 Benefits Attract Attention
Samsung Card Designates Service for 6 Existing Products Only

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?ranging from new card introductions, industry behind-the-scenes, to guides for card beginners?through its weekly 'Cards in Daily Life' corner, sharing content inseparable from our consumer lifestyle.

Credit cards that middle and high school students can use under their own names have been introduced. These are available only in the form of 'family cards,' where parents set restrictions on the card usage categories and limits for their minor children. This came about after the Financial Services Commission designated family card services for minor children as an innovative financial service in January, granting special exceptions.

Currently, Shinhan Card and Samsung Card have released credit cards for middle and high school students. Both have a maximum monthly limit of 500,000 KRW and apply restrictions on usage categories such as transportation, stationery/bookstores, convenience stores, and academies. This is to prevent misuse or abuse of the card by minor children in advance. Card applications can be made non-face-to-face through each card company’s website or application (app).

On the 14th, Shinhan Card launched 'Shinhan Card MyTeens,' limiting the monthly limit and per-use limit to 100,000 KRW and 50,000 KRW respectively. The monthly limit can be increased up to 500,000 KRW only if parents apply.

This card’s convenience store-related benefits stand out. When used at the convenience store GS25, GS&POINT accumulation and GS POP services are provided without the need to launch a separate app or generate a barcode. Especially, depending on the previous month’s usage, middle and high school students receive mobile gifticons worth 2,000, 4,000, or 6,000 KRW that can be used immediately at GS25 convenience stores. Additionally, youth discounts are automatically applied when using public transportation.

Card design options include three choices: the futuristic digital graphic 'Metaverse,' the sweet and relaxing 'Macaron,' and the simple yet luxurious 'Aurora' using gradients. The annual fee is 1,000 KRW service fee only, with no basic annual fee.

Unlike Shinhan Card, Samsung Card designated existing credit cards that can be used as youth family cards. There are six types: 'Samsung Card 3 V4,' 'Samsung Card 4,' 'Samsung Card 4 V4,' 'Samsung Card 4 V4 (Point),' 'Samsung Card & Basic,' and 'Samsung Card & Point.' If parents and children use the same card product, the family card annual fee is waived. Additionally, financial education videos will be provided to card applicants.

Since the initial designation of middle and high school credit cards as an innovative financial service, there have been concerns about allowing minors to use credit cards based on credit. The biggest issue raised was the risk of abuse due to convenience and impulsive spending. However, this service is a family card issued under the credit standards of the primary member?such as spouse, parents, or children?and has category and limit restrictions to minimize the possibility of reckless spending by youths. It is not a credit card used under the youth’s own credit, and the amount and places where the card can be used are predetermined. Since it is illegal to hand over a check or credit card in a parent’s name to a child, using a card in one’s own name rather than carrying an 'eomka' (mom’s card) may help foster proper spending habits within a legal framework.