[Ki Ha-young's Life Card] 'Haetsallon Card' for Lowest Credit Borrowers, Who and How to Get It

Card for Bottom 10% Credit Scores
Sequential Launch by 7 Card Companies from 27th
Usage Limit Up to 2 Million Won, Restrictions on Card Loans, etc.

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, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions to new cards, industry behind-the-scenes, and guides for card beginners.

The 'Haetsalron Card,' which can be issued to the lowest 10% credit score holders with a maximum limit of 2 million KRW, was launched on the 27th. It is a policy financial product aimed at improving payment convenience for vulnerable low-income groups and providing credit card usage benefits. We have summarized the eligibility, application method, and benefits.

Who and How to Apply

The Haetsalron Card can be applied for by individuals with a disposable income of at least 6 million KRW per year, a personal credit score in the lowest 10% or below (as of October 27, KCB standard 655 points, NICE standard 724 points or below), and who do not have a personal credit card as of the guarantee application date. Additionally, applicants must complete all three mandatory Haetsalron Card courses on the Financial Education Portal of the Korea Inclusive Finance Agency.

Card application is possible after applying for a guarantee at the Korea Inclusive Finance Agency and undergoing screening to conclude a guarantee contract. Guarantee applications can be made via the Korea Inclusive Finance Agency's mobile application (app) or by visiting the Korea Inclusive Finance Integrated Support Center. Since prior reservation is required for center visits, applying through the app is preferable for faster processing. Once the guarantee contract is concluded through the guarantee application, applications and issuance are available at the seven affiliated card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana Card).

Maximum Monthly Limit of 2 Million KRW, Card Loans Not Allowed

The usage limit is up to 2 million KRW per month. The guarantee amount is assigned differentially based on guarantee screening considering repayment willingness index and creditworthiness. The repayment willingness index is evaluated based on credit and debt improvement and efforts to increase credit. The card usage limit is operated lower than the guarantee limit, considering unauthorized payments such as transportation and communication fees.

Only one Haetsalron Card is allowed per person, and cash advances or card loans are not permitted. Additionally, installment periods are limited to a maximum of six months, and issuance of family cards and postpaid Hi-Pass cards is restricted. Revolving payments, split payments, overseas payments, and usage in entertainment and gambling industries such as karaoke bars and casinos are also prohibited.

Annual Fees from 2,000 KRW to 10,000 KRW... Benefits Vary Among Seven Card Companies

Card benefits differ by company. Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, and Woori Cards launched the Haetsalron Card on the 27th, and Hana Card plans to introduce its product around mid-next month.

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 Cards?charge 10,000 KRW.

Samsung Card offers the highest discount rate. Although a minimum spending requirement applies, 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 malls, Olive Young, Daiso, etc., and daily convenience areas include coffee shops, convenience stores, and delivery apps. Depending on the previous month's spending, discounts are 7% for 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 retail stores (excluding department stores and major discount stores) such as neighborhood supermarkets and general stores. Additionally, it provides a 10% discount at coffee shops and bakeries, and on weekends, a 10% discount 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 the previous month and 20,000 KRW for over 600,000 KRW.

Hyundai Card offers a 1% discount in daily convenience areas (public transportation, convenience stores, large discount stores) and 0.5% discount at other merchants for previous month spending over 300,000 KRW. There is no discount limit, and specialized services such as Costco usage and Hyundai Card Library access are also available.

KB Kookmin Card provides 0.5% points accumulation at all merchants and an additional 0.5% accumulation at supermarkets, marts, and convenience stores for previous month spending over 300,000 KRW. The monthly points accumulation limit is 20,000 points combining basic and additional accumulation. Woori Card offers 3% points accumulation on mobile communication, public transportation, coffee, and movies; 1% on department stores, discount stores, online shopping, and fuel; and 0.8% on other merchants. Points are awarded as 10,000, 20,000, and 50,000 points for previous month spending of 300,000 KRW, 600,000 KRW, and 1,200,000 KRW respectively.

Lotte Card and Hana Card have no previous month spending or monthly discount/points limits but offer simpler preferential benefits. Lotte Card provides a 1% discount on online sectors and 0.5% on other sectors. Hana Card offers 0.7% points accumulation at all merchants and 1.0% points accumulation on digital payments.