Business Agreement for "Donghaeng Festival" to Support Small Businesses and the Self-Employed
Shinhan, Hyundai, and Lotte Remain Silent on Homeplus Response
Shinhan and KB Decline to Comment on Apple Pay Introduction
The Ministry of SMEs and Startups, the Financial Supervisory Service, the Credit Finance Association, and nine credit card companies signed a "Business Agreement to Revitalize the Use of Small Business Stores and Traditional Markets" on the 10th, emphasizing their commitment to sparing no support to boost domestic consumption.
They remained tight-lipped regarding responses related to Homeplus card payment receivables by Shinhan, Hyundai, and Lotte Card, as well as the introduction of Apple Pay by Shinhan and KB Kookmin Card.
On the 10th, Oh Young-joo, Minister of SMEs and Startups, Lee Bok-hyun, Governor of the Financial Supervisory Service, Jung Wan-gyu, Chairman of the Credit Finance Association, and representatives of nine card companies held a business agreement ceremony at the Credit Finance Association in Jung-gu, Seoul, to promote consumption activation for small business owners and traditional markets, and took a commemorative photo. 2025.3.10 Photo by Jo Yong-jun
The Donghaeng Festival will be held four times a year, seasonally, starting this year. From the 1st, an online-centered "Early ON Donghaeng Festival" has been ongoing for 28 days.
The nine domestic card companies (Samsung, Shinhan, KB Kookmin, Hyundai, Hana, Woori, Lotte, BC, and NH Nonghyup) offer a 10% discount (cashback) or up to 10,000 KRW discount when paying by card at Baeknyeon Gage, traditional markets, and small business stores. They also provide cashback and prize draw benefits when using Onnuri gift certificate affiliated stores, along with supporting their own mall discount promotions and various publicity efforts to encourage usage.
Lotte Card and KB Kookmin Card will participate starting from this month's Donghaeng Festival, while the other card companies will join the Donghaeng Festivals held after this month. The Financial Supervisory Service supports business consultations among the agreement institutions. The Credit Finance Association assists with marketing support, performance management, and publicity for the nine card companies.
The industry is also promoting the launch of specialized cards or marketing promotions to stimulate consumption in traditional markets. BC, Hana, KB Kookmin, and NH Nonghyup Cards will launch new cards offering up to 10% points or cashback benefits when using traditional markets starting from May. Lotte, Samsung, Hyundai, Shinhan, Woori, and NH Nonghyup Cards will additionally provide up to 10% discounts when using their cards at traditional markets.
Oh Young-joo, Minister of SMEs and Startups, said, "By signing a business agreement with the nine card companies, more consumers will visit small business stores and traditional markets during the Donghaeng Festival period, promoting domestic consumption," adding, "I hope more consumers enjoy favorable conditions at the Donghaeng Festival while utilizing small business and traditional market stores."
Lee Bok-hyun, Governor of the Financial Supervisory Service, encouraged, "The card industry has been striving to ease the burden on low-credit and low-income groups by extending repayment periods," and said, "After the agreement, we expect to achieve practical support effects for small businesses and traditional markets through various discounts and the launch of specialized traditional market cards to stimulate consumption."
Lee Bok-hyun, Governor of the Financial Supervisory Service (center), is delivering a greeting at the business agreement ceremony to promote consumption among small business owners and traditional markets at the Credit Finance Association in Jung-gu, Seoul, on the 10th. Jung Wan-gyu, Chairman of the Credit Finance Association (left), and Park Chang-hoon, CEO of Shinhan Card (right), are listening attentively. March 10, 2025 Photo by Jo Yong-jun
The representatives of the card companies responded by pledging to launch new products tailored to traditional markets and to participate in boosting domestic consumption by foreigners. Sung Young-soo, CEO of Hana Card, said, "Currently, 70% of active affiliated stores are small businesses, and I believe card companies play a role in raising domestic consumption from the grassroots level," adding, "We will issue a traditional market check card within this month as part of efforts to revitalize traditional markets through cashback."
Choi Won-seok, CEO of BC Card, said, "At the Mobile World Congress (MWC), we operated a 'K-Pojangmacha (Pojang)' booth for four days, providing a service where QR code payments allowed customers to immediately receive Korean traditional market food. As a result, over 1,700 people exchanged business cards," and added, "We will focus on activating foreign consumer spending going forward."
Kim Yi-tae, CEO of Samsung Card, said, "According to our statistics, sales at small business traditional markets are sharply declining," and added, "The Donghaeng Festival is a timely event."
Park Chang-hoon, CEO of Shinhan Card, said, "Based on our experience participating in two events last May and September, we will prepare well to hold an even better event this year."
Kim Jae-gwan, CEO of KB Kookmin Card, said, "We participated in the Donghaeng Festival last September, and sales at Onnuri affiliated stores increased by about 13% during the event period," adding, "This year, all institutions (the nine card companies) will attend to contribute even a little to increasing small business sales."
Meanwhile, the card company representatives remained silent on the introduction of Apple Card by Shinhan and KB Kookmin Card and the response measures related to Homeplus card payment receivables.
CEOs Park Chang-hoon and Kim Jae-gwan did not respond to reporters' questions asking, "Apple Pay introduction is imminent; can you confirm it here?"
Kim Deok-hwan, CEO of Hyundai Card, Jo Jwa-jin, CEO of Lotte Card, and Park Chang-hoon, CEO of Shinhan Card, all refrained from commenting on questions about whether there are any support measures or response plans prepared during the Homeplus securitization bond repayment and corporate rehabilitation process.
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