Korean card companies compete to secure young customers

One Pick Hana Check Card

Competition in South Korea’s financial industry is intensifying after children as young as seven became eligible to receive debit cards under their own names starting on May 4.

According to the credit card industry on Tuesday, the Financial Services Commission approved amendments to the Enforcement Decree of the Specialized Credit Finance Business Act at a Cabinet meeting on April 28.

The revisions lowered the minimum age for debit card issuance from 12 to seven, raised the spending limit for minors’ postpaid transportation cards from 50,000 won ($33.5) to 100,000 won, and formally established the issuance system for family credit cards.

The amendments allow first-grade elementary school students to use debit cards issued under their own names, provided they have parental consent and operate within designated spending limits linked to a family card account.

With barriers to card issuance for minors significantly lowered, the financial industry is moving quickly to capture the emerging market.

The frontrunner is Shinhan Card Co.

Since May 4, the company has expanded the eligible age for its Shinhan Card First Check debit card from 12 to seven years old. The card can be issued through Shinhan Card’s online channels and Shinhan Bank branches, offering benefits such as discounts on academy tuition and convenience store purchases aimed at young customers.

Hana Card launched the One Pick Hana Check Card on May 6 for parents with children aged seven or older.

The card’s key feature is that it provides cashback and other benefits without requiring a minimum monthly spending amount.

Internet-only banks are also leveraging their strength in digital onboarding to attract younger users.

KakaoBank Corp. lowered the minimum age for its prepaid electronic payment service “mini” to seven years old. The service, which allows sign ups via a child’s own mobile phone, waives transfer fees and includes integrated Tmoney for public transportation.

Kbank Inc. introduced the My Kids Account, allowing parents to open and manage their children’s savings via their own smartphones. The service features a transfer limit to help children practice spending within a controlled range.

“The goal is to foster natural financial education as children grow,” said a Kbank official.