Four Banks Compete for Third Nara Sarang Card Operator
Final Selection of Three Banks to Be Announced on April 30
The bidding for the third round of the Nara Sarang Card, a debit card exclusively for military personnel, has become a four-way competition among KB Kookmin Bank, Shinhan Bank, Hana Bank, and IBK Industrial Bank of Korea.
According to the financial sector on April 28, a total of four banks participated in the bidding, which was held until 11:00 a.m. that day. Military Mutual Aid Association C&C, the operator of the Nara Sarang Card, will conduct presentations over two days starting April 29, and is scheduled to select three final banks on April 30.
The Nara Sarang Card is a mandatory card for military enlistees, used as both a payroll account and an ID card. Banks have been eager to win the contract, as being selected as an operator secures a potential customer base of up to 200,000 people annually. The three banks selected this time will serve as third-round operators and will manage the project for eight years (a basic term of five years, with a possible three-year extension).
The selection of operators is expected to be determined by the tangible benefits provided to service members. According to the scoring table, 25 out of 100 points are allocated to additional and financial services. Ease of card issuance is also highly weighted.
Hana Bank, participating for the first time this year, is currently offering non-face-to-face rental deposit loan products and retirement benefit reserve loans for career soldiers who have difficulty visiting branches due to frequent relocations or remote postings. The bank has also expanded preferential credit loans to junior officers (sergeants) who have served for more than six months. For the Jangbyeong Naeil Preparation Savings program for enlisted soldiers, Hana Bank offers a maximum interest rate of 8.00%. If selected as a third-round operator, the bank is preparing to introduce an additional preferential interest rate of 0.2% for customers who join the Military Mutual Aid Association.
Banks with prior experience?Shinhan Bank (first round), KB Kookmin Bank, and IBK Industrial Bank of Korea (second round)?have also raised the maximum interest rates for the Jangbyeong Naeil Preparation Savings program and are reportedly preparing additional benefits, expanding into areas such as telecommunications and non-financial services.
Initially, the third round of Nara Sarang Card operator selection was expected to be a six-way competition, with Woori Bank and NongHyup Bank also in the running. However, Woori Bank and NongHyup Bank did not participate in the final bidding. A Woori Bank representative stated, "After reviewing various factors, we decided not to participate in this round of bidding."
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