[1mm Financial Talk] Why the NongHyup Bank President Engraved 'Gyeonggi-do Paju' on a Credit Card

Project to Save Endangered Hometowns
'Jigeum Gohyang-euro' Card Issued 50,000 Times in Two Months
Created with 17 Billion Won After Bank President's Inauguration

Lee Seok-yong, President of NongHyup Bank, these days carries a credit card engraved with the words "Gyeonggi-do Paju," his hometown, in his wallet. He shows the card to everyone he meets, introducing it by saying, "If you make this, they even engrave the name of your hometown." Although he says, "There isn't much profit even if we sell it," he adds, "The more we sell, the greater the meaning." The "ZGM (Now). To Hometown" card is also his first project since becoming bank president in January this year.

Typically, the cost to create a single card product is at least 200 million won. However, this card cost 17 billion won due to marketing expenses. The unusual large investment was made with the purpose of revitalizing our hometowns, which are in danger of disappearing. NongHyup's foundation is the hometown, and its reason for existence depends on increasing consumption and circulation of money in the hometown.

The concept embedded in this credit card is twofold. The first is that the more you use the card, the more you can help your hometown. 0.1% of the amount paid with the card is donated as a public fund to local governments through regional NongHyup branches. This fund is used for rural social contribution activities.

▲'ZGM(Jigeum). To Hometown' Credit Card Introduction Screen Capture

The second is its usefulness when traveling to the provinces on weekends. If you use this card in your registered hometown (based on province (do)) on Saturdays and Sundays, 1.7% of the amount spent is accumulated as points. For Hanaro Mart or NongHyup gas stations on weekends, you can earn 1.7% points not only in your hometown but also in other regions. Considering that typical card point accumulation rates are around 1%, this is relatively high. Accumulated points can be converted into cash and used at NongHyup Bank.

In line with the slogan "Growing the Hometown I Picked," when creating the card, you can enter your hometown and have the region's name engraved on the physical card. This is to evoke nostalgia and increase pride in donating to the hometown. You can register any place you love as your hometown and make a card, not necessarily the place where you were born. This card issued 50,000 cards within two months of its launch. A NongHyup Bank official said, "Normally, about 200 cards are issued daily, but now the 'To Hometown' card is so popular that 700 to 800 cards are issued per day."

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