Saemaul Geumgo and Hana Card are launching a credit card that significantly enhances online video service (OTT) and easy payment benefits. Saemaul Geumgo plans to provide benefits and services that were previously unrelated to the credit union through a commercial credit card (PLCC) and attract new customers of various age groups.
According to the financial industry on the 14th, Saemaul Geumgo and Hana Card will launch a new PLCC product, the 'MG+S Card', this week. Looking at the main billing discount details, it offers a 10% discount for six easy payment options: ▲Naver Pay ▲Kakao Pay ▲Toss Pay ▲SSG Pay ▲11Pay ▲Smile Pay, for transactions of 10,000 won or more. Essentially, this allows customers to receive a 10% discount on all easy payment services used in Korea. Additionally, a 50% discount can be applied for payments made through digital memberships such as Naver Plus or Kurly Members.
A 50% discount rate applies to OTT services such as YouTube, Disney Plus, and Netflix. The annual fee for the card is 17,000 won, but it can be fully refunded under the current Saemaul Geumgo credit card event. Saemaul Geumgo is currently running an 'Investment member annual fee cashback' event, where if an investment member uses the MG+ credit card for over 100,000 won by the end of the month following the initial issuance, the annual fee will be automatically refunded. An investment member of Saemaul Geumgo refers to someone who has an investment account and has made deposits.
The maximum picking rate (discount rate) for the card, when all benefits are utilized, is 6% per month (6% for spending over 1 million won in the previous month, 5% otherwise). The picking rate refers to the ratio of benefits to the amount used on the credit card, and generally, a picking rate above 5% is considered excellent. This card stands out in a recent market where it has become difficult to find attractive credit cards with solid benefits. Compared to the picking rate of 3% at the maximum for the existing Our Card 'Card's Essentials' series, this is significantly higher.
The Saemaul Geumgo Central Association first entered into a credit card partnership with Hana Card in the second half of last year and launched its first PLCC, the MG+Primo Card, in October 2024. Earlier, in June 2023, Hana Card was ultimately selected as the PLCC operator in a public competitive bidding for the PLCC project by the Saemaul Geumgo Central Association. PLCC is a card created through collaboration between the card company and partner companies from product planning to marketing and operation. It differentiates itself from existing co-branded cards by providing benefits specialized for the brand.
For card companies, PLCC is a lucrative product that reduces operational burdens. The expenses are shared with the partners, which alleviates the burden. Saemaul Geumgo, as a partner, also benefits from launching dedicated cards to secure loyal customers. Especially, as Saemaul Geumgo expands its entry into the credit card business, it is effectively generating revenue through attracting new customers and deposits. In just seven months since its launch, Saemaul Geumgo's first PLCC, the MG+Primo Card, surpassed 100,000 issued cards.
In particular, the card business and PLCC are playing a significant role in securing a diverse customer base beyond the middle-aged customers, who are Saemaul Geumgo's main clientele. The easy payment benefits of the MG+S card being launched now and the benefits of the Life Fit check card launched last week indicate that the main target demographic is people in their 20s and 30s.
To issue the card, individuals must visit a Saemaul Geumgo branch or use the Saemaul Geumgo application, which could attract younger customers. A representative from the Saemaul Geumgo Central Association noted, 'The card business is a project planned and promoted at the central association level, and this product is prepared to secure new customers centered on the younger demographic at each regional credit union.'