[Evolving CSR] Lotte Card Issues 150 Billion KRW Social Bond... Support for Franchise Owners

Warm Management Initiatives by Card Companies ⑤ Lotte Card
Expanding Paperless Work Environment
Participating in Environmental Issue Prevention
Operating Point Donation System for 8 Years

[Editor's Note] The methods of social contribution by card companies are evolving. As the emphasis on corporate social responsibility grows for sustainable management?including non-financial factors such as environment, society, and governance (ESG) beyond financial indicators?social responsibility is becoming more prominent in financing, and the scope of social contribution is expanding to include children and youth, local communities, natural environment, and culture and arts. Especially this year, card companies are conducting various social contribution activities, not only providing financial support but also utilizing big data for marketing analysis to assist financially vulnerable groups facing crises due to the COVID-19 pandemic. Asia Economy presents a series on the social contribution activities of individual card companies leading warm-hearted management.

[Asia Economy Reporter Ki Ha-young] Lotte Card is fulfilling its corporate social responsibility to promote sustainable growth. Representative efforts include issuing its first ESG bond as a social bond to help franchise owners struggling due to COVID-19 and expanding digital and paperless work environments to protect the environment.

Last month, Lotte Card issued social bonds worth 150 billion KRW aimed at providing financial support to small and medium-sized franchisees. Social bonds are a type of ESG bond issued to solve social issues such as supporting socially vulnerable groups and creating jobs. The funds raised will be used for early payment of card settlement funds to small and medium franchisees facing difficulties due to COVID-19.

To issue this ESG bond, Lotte Card became the first private financial company to receive the 'ESG Finance Certification Evaluation' from Korea Credit Rating. It achieved excellent results in project eligibility, fund allocation ratio, fund management, operational system, and transparency evaluation, receiving the highest grade 'SB1.' The total bond issuance amounts to 150 billion KRW, consisting of 60 billion KRW with a 3-year 3-month maturity, 20 billion KRW with a 4-year maturity, and 70 billion KRW with a 5-year maturity.

Lotte Card is also actively participating in environmental issue prevention by expanding digital and paperless work environments. This effort aims to reduce unnecessary paper use and minimize waste generation from paper disposal, deforestation during production, and carbon dioxide emissions.

First, credit card issuance is now possible using only tablet PCs instead of paper application forms. Currently, most new individual member sales are conducted through electronic application forms on tablet PCs, and customer inquiries are also handled via tablet PCs. Especially from this month, the 'Mobile Sales Automation System' using tablet PCs has been introduced in corporate sales, which traditionally relied on paper forms, further expanding the paperless environment.

Lotte Card is also striving to reduce paper use through digitalization of card receipts. Together with Kakao Pay, Lotte Card operates a digital sales slip (Kakao Pay receipt) service. Through this, customers can check receipts via mobile without separately printing paper receipts.

As part of its social contribution brand 'Love Factory,' Lotte Card has maintained a 'Point Donation System' for eight years. On the Lotte Card social contribution website, members can donate as many points as they wish to NGOs they want to support and can also make regular donations. A point matching donation campaign is also in operation. Since starting the point donation program in 2013, about 49,000 members have participated, raising approximately 440 million points to date.

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