Up to 2 Million Won 'Haetsalron Card'... Which Card Company Is Advantageous?

Policy Financial Products for Bottom 10% Credit Scores
Launched on the 27th by Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, and Woori Cards
Annual Fees and Benefits Vary by Company, Comparison Needed

[Asia Economy Reporter Ki Ha-young] The 'Haetsalron Card,' which can be issued up to a maximum limit of 2 million KRW even to the lowest credit scorers, will be launched tomorrow (27th). Since it can only be issued by one of the seven full-service card companies, it is expected to be advantageous to carefully compare benefits such as annual fees.

According to the card industry on the 26th, Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, and Woori Cards will launch the Haetsalron Card, a policy financial product for low-income earners, on the 27th of this month. Hana Card is also expected to introduce the product around mid-next month.

The card benefits vary by company. Annual fees range from 2,000 KRW to 10,000 KRW. Lotte Card has the lowest annual fee at 2,000 KRW, Shinhan and Samsung Cards charge 5,000 KRW, and the others?KB Kookmin, Hyundai, Woori, and Hana?charge 10,000 KRW.

Benefits are focused on daily convenience sectors. Samsung Card offers the highest discount rates. Samsung Card provides up to 15% payment day discounts (up to 7,000 KRW per month) in shopping, daily convenience areas, and medical sectors. Shopping includes discount stores, online shopping malls, Olive Young, Daiso, etc., and daily convenience areas include coffee shops, convenience stores, and delivery apps. Depending on the previous month's spending, a 7% discount is given for spending over 300,000 KRW, and 15% for over 600,000 KRW.

Shinhan Card offers a 7% discount on purchases at small and medium-sized daily distribution stores (excluding department stores and major discount stores) such as neighborhood supermarkets and general stores where daily necessities can be bought. Additionally, a 10% discount is available at coffee shops and bakeries, and on weekends, a 10% discount is also offered at complex shopping malls and the three major marts (E-Mart, Homeplus, Lotte Mart). The monthly discount limit is 12,000 KRW for spending over 300,000 KRW in the previous month and 20,000 KRW for spending over 600,000 KRW.

Hyundai Card provides a 1% discount in daily convenience areas (public transportation, convenience stores, large discount stores) when the previous month's spending exceeds 300,000 KRW, and a 0.5% discount at other affiliated stores. There is no limit on the discount amount, and specialized services such as Costco usage and Hyundai Card Library access are also available.

KB Kookmin Card offers a 0.5% point accumulation at all affiliated stores and an additional 0.5% accumulation at supermarkets, marts, and convenience stores when the previous month's spending exceeds 300,000 KRW. The monthly accumulation limit is 20,000 points combining basic and additional accumulation. Woori Card provides 3% accumulation on mobile communication, public transportation, coffee, and movies; 1% accumulation on department stores, discount stores, online shopping, and fuel; and 0.8% accumulation on other affiliated stores. Depending on the previous month's spending of 300,000 KRW, 600,000 KRW, and 1,200,000 KRW, 10,000, 20,000, and 50,000 points are given respectively.

Lotte Card and Hana Card have no conditions on previous month's spending or monthly discount/accumulation limits but offer simpler preferential benefits. Lotte Card provides a 1% discount in online sectors and 0.5% discount in other sectors. Hana Card offers 0.7% accumulation at all affiliated stores and 1.0% accumulation on digital payment transactions.

The Haetsalron Card can be applied for by individuals in the bottom 10% or lower of credit scores who can prove income (disposable income of at least 6 million KRW annually) and have completed more than 3 hours of credit management education.

After applying for a guarantee and undergoing screening through the Korea Inclusive Finance Agency app, and upon guarantee approval, applicants must complete mandatory Haetsalron Card education on the Korea Inclusive Finance Agency's financial education portal. Then, after signing the guarantee agreement via the Korea Inclusive Finance Agency app, they can apply for and receive the card from one of the seven card companies. The usage limit is up to 2 million KRW per month. Only one card per person is allowed, and usage is restricted for cash services, card loans, and entertainment/gambling sectors such as karaoke bars and casinos.