[Gi Ha-yeong's Daily Card] 2000 Won for Issuing a Check Card? ... Why the Issuance Fee

Hanacard to Charge 2,000 KRW Fee for Check Card Reissuance and Additions Starting from the 6th of Next Month

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions of new cards, behind-the-scenes industry stories, and guides for card beginners.

Hana Card will charge a 2,000 KRW fee when issuing check cards starting from the 6th of next month. However, until December this year, customers who spend more than 10,000 KRW within one month after issuance will receive a cashback of the fee. In fact, this means that the fee will not be charged to card users, but among customers, complaints are erupting that charging an issuance fee for check cards with no benefits is too much.

Hana Card explains that this measure was a decision for better service. The issuance fee to be charged from next month applies to additional or reissued cards, not new issuances. Renewal cases will not be charged a fee either. It is explained that this was a measure to curb indiscriminate issuance of check cards.

In fact, the number of check cards issued domestically was 110.7 million as of last year, averaging 3 to 4 cards per economically active person. Adding the number of credit cards doubles that. This is interpreted as meaning that many cards are not actually used. The cost to issue one check card is about 4,000 KRW, so from the card companies’ perspective, it is inevitably more burdensome than credit cards that charge annual fees.

However, from the consumer’s point of view, this issuance fee policy is not welcome. Check cards are mainly issued to university students or young adults and are mostly issued during banking transactions. Since they offer fewer benefits than credit cards, complaints such as "Why charge an issuance fee for check cards that have no benefits?" are surfacing on online communities. There are also sharp criticisms that card companies are cutting customer services to reduce costs.

Because of this, it remains to be seen whether other card companies besides Hana Card will impose fees on check card issuance. The card industry understands Hana Card’s choice but finds it difficult to readily join the paid issuance of check cards. This is because customer resistance is strong to making check cards, which were previously issued for free, paid. Hana Card also states that it will monitor the operational situation until the end of this year and may consider other measures such as extending the cashback policy.

This content was produced with the assistance of AI translation services.