By Kim Jae-won
A new product of KB Kookmin Card has brought a change to the industry. The card named “Hyedam” or “collecting benefits” in Korean drew 180,000 customers in five months enjoying more-than-expected praise from people.
The card affiliate of KB Financial Group says its wide range of benefits and big discount points are reasons behind the fever for the product. People who have been sick of taking multiple cards are flocking to the new card as it merged all benefits into one.
The Hyedam card provides 5 to 10 percent of discount services for customers when they use transportation and telecommunication services and paying taxes. Customers can also choose 12 services which range from gas station and medical services to shopping and restaurants. The company cuts 5 to 30 percent of prices for them.
For instance, customers, who used more than 700,000 won with the card in the previous month, can get 60 won to 80 won discount per liter at gas stations. In terms of movie and performance tickets, users can get up to 20 percent of discount.
Hyedam has good news for summer vacationers. It provides up to 10 percent of discount at tour-related items such as overseas consumption, duty free shops and air tickets. It also offers up to 10 percent of discount at golf courses.
KB charges from 5,000 won to 60,000 won of annual fees for customers. The more fees they pay, the more benefits they get. Customers who want to use it offshore can apply for its Master Card version with an additional fee.
“Hyedam helps customers use credit cards effectively by maximizing various benefits with one card. It is our strategic product celebrating the first anniversary of our company,” said KB in a statement.
KB Kookmin Card was spun off from KB Kookmin Bank, the nation’s biggest lender, a year ago, to boost efficiency of management. Some industry watchers worried about the new start, but analysts say it has successfully settled down under leadership of CEO Choi Gi-eui.
Choi, former CSO of the banking unit, shaped the company as a leading player with his strategy, according to experts.
KB says that other players also imitate Hyedam as it gains popularity in the market. They released similar type of plastic cards which combine many benefits into one card.