[Practical Personal Finance] Card Companies Move to Ease Lunar New Year Shopping Burden Amid High Inflation

Prices of key holiday staples above average
Discounts at hypermarkets, SSMs, and online malls
Abundant benefits including statement discounts, points, and interest-free installments

Against a backdrop of persistently high inflation, prices of major agricultural and livestock products and holiday essentials remain above their average levels in previous years, increasing the burden on consumers preparing for the Lunar New Year. In response, the card industry is rolling out various benefits such as discounts and gift vouchers across a wide range of sales channels, including large discount stores and online platforms, to capture holiday spending demand.

Citizens are shopping at Malbau Market in Buk-gu, Gwangju, on the 9th. Yonhap News

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 11th, as of the 6th, the retail price of one head of cabbage was 4,634 won, up 32.36% from the average level in previous years, while the price of one radish was 1,988 won, an increase of 5.24%. The average price in previous years is calculated as the three-year average from 2021 to last year, excluding the maximum and minimum prices. Due to last year’s poor harvest, the prices of cabbage and radish, which surged, are still remaining high compared to the average in previous years.

In addition, apples (Fuji, standard grade), which are essential for the ancestral ritual table, cost 27,636 won for 10, up 2.11% from the average in previous years. Among livestock products, pork belly was 2,648 won per 100 grams, up 10.9% from the average level in previous years. Chicken was 5,898 won per kilogram, a 2.8% increase, and eggs were 3,909 won per pack of 10, up 10.5%.

Card companies expand card benefits ahead of the Lunar New Year peak season

As the prices of key holiday essentials remain higher than in previous years ahead of the Lunar New Year, consumers are feeling a heavier cost-of-living burden. Accordingly, card companies are intensifying promotions both online and offline, offering discounts and gift vouchers during the period when holiday spending is concentrated.

Samsung Card is offering up to 50% discounts on Lunar New Year gift sets purchased at large discount stores such as Nonghyup Hanaro Mart, Emart, Traders, and Homeplus. At Lotte Mart, discounts of up to 30% are available. In addition, depending on the amount spent, customers can receive gift vouchers worth up to 500,000 won at Lotte Mart, Emart, and Traders, and up to 2.5 million won at Nonghyup Hanaro Mart, while at Homeplus they can receive discounts of up to 2.5 million won. Interest-free installment plans by merchant category are also available for up to 10 months, depending on the amount spent.

Shinhan Card is offering a statement discount of up to 30,000 won based on the average credit card usage over the previous three months. For debit card users, it is introducing a "New Year’s Allowance Event" that pays out membership points. It will award 1,000 membership points to 10,000 customers who have used a debit card at least once, and will grant 30,000 points each day to the first 10 customers who spend 100,000 won or more in a single day at domestic merchants. The top 100 customers in spending at overseas merchants will receive 50,000 points.

Hana Card is offering up to 50% instant discounts or gift vouchers by purchase amount on Lunar New Year gift sets bought at offline stores such as Nonghyup Hanaro Mart, Lotte Mart, Emart, Homeplus, and GS The Fresh. Online, it is providing up to 15% discounts on Lunar New Year gift sets purchased through platforms such as Musinsa, Kurly, and Gmarket. In particular, it is offering a 7% statement discount on purchases of 500,000 won or more at the LG Electronics online mall, and up to 100,000 won in instant discounts depending on the purchase amount at the Hanssem online mall, thereby providing additional benefits to customers purchasing home appliances and furniture.

BC Card is offering gift vouchers worth up to 20,000 won depending on the payment amount at Hyundai Department Store, Hyundai Outlet, and Connect Hyundai. Consumers can also purchase gift sets, fruits, meat, and home appliances at discounts of up to 50% at Emart, Emart Everyday, and Homeplus. In particular, Emart is running a promotion that offers gift vouchers worth up to 500,000 won depending on the purchase amount. In addition, at corporate supermarkets (SSMs) such as GS The Fresh and Lotte Super, customers can receive 10% of their purchase amount back in mobile vouchers or enjoy discounts of up to 30% on selected promotional items.

KB Kookmin Card is offering mobile gift vouchers worth 20,000 won on purchases of 300,000 won or more of Lunar New Year gift sets at Lotte Department Store, and 40,000 won on purchases of 600,000 won or more. At Hyundai Department Store, customers will receive gift vouchers or membership points worth 10,000 won on purchases of 200,000 won or more, and 20,000 won on purchases of 400,000 won or more. On online channels such as Gmarket and Auction, it is holding discount events of up to 10% on Lunar New Year promotion items, and up to 15% at Kurly.

NH Nonghyup Card is running discount promotions at Hanaro Mart. Customers can receive discounts of up to 65% on major agricultural and livestock products and key Lunar New Year essentials that are highly sensitive to price changes. At NH Singsing Mall (Nonghyup Mall), discounts of up to 20% are available on Lunar New Year gift sets and processed and household goods. In addition, at NH Oil gas stations, customers paying 30,000 won or more through NH Pay will receive a 5% discount. Participation is limited to once during this month, and posters and QR codes at participating gas stations will provide guidance on the event.

Recently, despite deteriorating business conditions in the card industry, such as rising funding costs and pressure on profitability, card companies have been stepping up promotions to boost spending during the Lunar New Year holiday. This is seen as a strategy to increase card usage through holiday consumption. During holiday periods such as Lunar New Year and Chuseok, purchases of high-priced gift sets and ritual offerings are concentrated, leading to a temporary increase in the volume of credit sales. By capturing this holiday demand in advance, card companies can secure a large volume of high-value payments within a short period.

An industry official said, "Various benefits are being offered so that consumers can reduce their financial burden during the holiday season," adding, "In particular, card companies are focusing on increasing benefits that can be tangibly felt during the purchasing process, such as discounts, gift vouchers, and interest-free installments, mainly on gift sets and daily necessities."