8 Major Credit Card Companies Sequentially Introduce
Maximum Limit of 2 Million KRW for Bottom 10% Credit Scores
[Asia Economy Reporter Ki Ha-young] The 'Haetsalron Card,' which can be issued even to low-credit individuals in the bottom 10% credit score bracket, will be launched next week. As the number of places where low-credit and low-income vulnerable groups can borrow money from regulated financial institutions decreases, demand for this card is expected to surge.
According to the Korea Inclusive Finance Agency and the card industry on the 19th, the policy-based inclusive finance product Haetsalron Card is scheduled to be launched around mid-next week. All eight major card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, BC) will introduce the product, with each company planning a sequential launch. Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, and Woori cards are expected to launch by the end of October, Hana Card in November, and BC Card, which has been actively introducing its own card since this year, plans to launch it next year. Benefits such as billing discounts based on usage amount and interest-free installments will also be provided, but since the benefits vary by card company, it is advantageous to review and apply accordingly.
The Haetsalron Card is a policy-based inclusive finance product provided by financial authorities to the lowest credit individuals who find it difficult to obtain credit cards, on the condition of completing credit management education and submitting income documentation. It is part of the 'Policy Inclusive Finance Supply System Reform Plan' announced by financial authorities as a follow-up measure to the maximum interest rate reduction implemented in July this year.
Assuming income verification (disposable income of at least 6 million KRW annually) is possible, individuals in the bottom 10% credit score bracket who complete more than three hours of credit management education can apply for the Haetsalron Card, with a usage limit of up to 2 million KRW per month. Only one card per person is allowed, and usage is restricted in entertainment and gambling industries such as cash services, card loans, karaoke bars, casinos, and real estate agencies. Additionally, those who already have and use a credit card are excluded from eligibility.
The total supply scale is 50 billion KRW. Although there is no allocated supply volume per card company, since products will be launched sequentially by company, customers may flock to the companies that introduce the product first. The card industry states that, as this is a new financial product for the lowest credit individuals, they will closely monitor aspects such as delinquencies. An industry official said, "When issuing credit cards to low-credit individuals, the risk of delinquency is higher than acquiring new customers," adding, "Since the launch dates differ by card company, demand may concentrate on those who launch the product first."
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