Annual Fee of 200,000 Won is OK... Hyundai Card's Premium Strategy Worked

Summit 2,000 Units... MX Surpasses 500 Units in 10 Days
Premium PLCC Members Double Compared to Same Period Last Year

Hyundai Card's premium card, launched last month, is smoothly settling into the market. The number of premium card users has also increased significantly.

According to Hyundai Card on the 23rd, the number of premium card members reached 340,000 as of the end of last month, a 34% increase compared to 280,000 in the same period last year. The membership size of the premium private label credit cards (PLCC) introduced in partnership with Korean Air, Mirae Asset, and American Express has doubled compared to the same period last year. Premium cards generally refer to cards with an annual fee exceeding 150,000 KRW.

The ‘Hyundai Card Summit’ and ‘Hyundai Card MX Black Edition2,’ unveiled last month, drove the strong performance. Since its launch on the 2nd of last month, about 2,000 Summit cards were issued within a month, and about 500 MX Black Edition2 cards were issued within ten days after its launch on the 22nd. Among the members who received these two cards, 80% were loyal customers who switched from regular cards to premium cards.

The Summit card offers benefits for families. It provides a 5% cashback benefit up to 20,000 KRW per month in everyday areas such as education, medical care, travel, and golf, and accumulates 1.5% of the payment amount without limit at all domestic and international merchants. The annual fee is 200,000 KRW. It has gained popularity among Generation X (born 1965?1980), with 58% of members in their 40s and 50s.

The MX Black Edition2 targets the MZ generation (Millennials + Generation Z), offering a 10% discount benefit up to 100,000 KRW per month in areas such as cafes, convenience stores, department stores, fuel, public transportation, and online shopping. It also accumulates 1% of the payment amount without limit at all domestic and international merchants. Although the annual fee reaches 200,000 KRW, about 67% of members are in their 20s and 30s.

Previously, Hyundai Card pioneered the premium card market by launching ‘The Black’ in February 2005. At that time, Hyundai Card set conditions such as an annual fee of 1,000,000 KRW, a maximum issuance of 9,999 cards, and membership by invitation only. Later, in 2018, it introduced the premium card ‘The Green’ targeting the MZ generation, and in 2021, ‘The Pink’ for shopping enthusiasts.

A Hyundai Card official said, “The number of members is steadily increasing with new products based on Hyundai Card’s slogan, Architect of Change.” He added, “The intuitive organization of credit card benefits and services has received a positive response by making it easy to choose and conveniently use credit cards.”