Even as Vacation Season Approaches... Card Users Still Snagging Living Expense Discounts

Utility and Living Expense Savings Cards Still Popular
Interest in Travel Discount Benefits Not as High as Before
Card Companies Tighten Belts... 'Hyeja Card' Discontinued

Despite the upcoming summer vacation season, interest remains focused on cards offering discounts on living expenses such as public transportation and utility bills. This is interpreted as a result of various living costs continuing to rise, while travel-related benefits remain unchanged from previous levels.

On the 16th, according to the rankings of credit cards based on product views and application conversion rates from June 1 to 16 on Card Gorilla, the largest credit card platform in Korea, cards offering discounts on general consumption and utility bills still occupy the top positions. Lotte Card's 'Roca365' and Shinhan Card's 'Mr. Life,' which provide discounts on apartment management fees, city gas, and electricity bills, have not fallen outside the top 5 rankings even once this year.

Among travel-specialized benefit cards, only 'Samsung Card & Mileage Platinum (Skypass)' appeared again as the sole card in the top 10 this month, following last month. This contrasts with June 2019, before COVID-19, when three travel discount benefit cards were included in the top 10.

As various public utility fees continue to rise, interest in benefits related to living expenses does not seem to diminish. According to the 'May Consumer Price Trends' recently announced by Statistics Korea, consumer prices rose 3.3% compared to the same month last year. This is the lowest figure in 19 months since October 2021 (3.2%). However, prices for electricity, gas, and water increased by 23.2%. Along with the electricity rate hike, this marks the second consecutive month of a 20%+ increase following the previous month’s 23.7%. Specifically, electricity fees rose by 25.7%, city gas by 25.9%, and regional heating costs by 30.9%.

Due to rising delinquency rates and concerns over deteriorating performance, credit card companies have begun tightening operations, leading to the discontinuation of popular discount cards for major living expenses. KB Kookmin Card stopped issuing 10 types of cards, including the ‘Tantandero All Shopping Card,’ starting today. The ‘Tantandero All Shopping Titanium Card’ was especially popular for offering a 10% discount at large supermarkets, as well as a 10% billing discount on apartment management fees and city gas charges. Despite its relatively low annual fee of 30,000 KRW, it also provided travel-related benefits such as access to Incheon Airport lounges and free valet parking services. The ‘Shinhan Card The Lady Classic,’ which was popular for various academy fee discounts, has stopped accepting new applications since last month.

Travel-related benefits released targeting the vacation season are also considered insufficient compared to before. Some card companies have effectively reduced benefits by setting amount conditions on overseas payment interest-free installment services. Although travel demand is expected to increase during the vacation season, the cold spell is likely to continue for some time after the temporary surge. An industry insider said, "With ongoing domestic and international uncertainties, credit card companies are expected to continue tightening their finances for the time being," adding, "Card consumers will also become smarter in seeking practical benefits."

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