Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Amex intensifies competition between Hyundai, Samsung
Seen is the American Express Platinum Card to be issued by Hyundai Card this week. Courtesy of Hyundai Card
By Park Jae-hyuk
Another battle sparked after rivalry for Costco partnership in 2018
By Park Jae-hyuk
Hyundai Card began stealing affluent American Express (Amex) Platinum Card customers here away from Samsung Card, which had served over the past decade as the exclusive Korean issuer of the premium credit card for individual users.
Their latest competition was sparked three years after Hyundai Card deprived Samsung Card of its 18-year-long status as Korea's only card firm partnered with Costco Wholesale Korea.
“Because both Amex and Hyundai Card pursue premium services, they are the best partners for each other. However, the two had been unable to join hands for a long time, due to the contract between Hyundai Card and Diners Club,” Hyundai Card Vice Chairman Chung Tae-young wrote on Facebook, Wednesday, disclosing the images of Amex cards to be issued by his company this week.
Hyundai Card was founded in 2001 in the wake of Hyundai Motor Group's acquisition of Diners Club Korea. Although the U.S. headquarters of Diners Club had maintained its partnership with Hyundai Card after the acquisition deal, the two companies ended their relationship in 2019.
As a result, Hyundai Card has been able to issue Amex's premium cards featuring the portrait of a centurion, an ancient Roman commander of a military unit comprised of around 100 soldiers.
Until recently, Samsung Card was the exclusive issuer of such cards for individual customers in Korea, while Lotte Card served as the exclusive Korean issuer of the cards for corporations. KB Kookmin, BC, Shinhan and Hana cards have issued Amex's cards without the centurion picture.
Hyundai Card set the annual fees of Amex Platinum at 1 million won ($840), Gold at 300,000 won and Green at 100,000 won, while Samsung Card set the annual fees of Amex Platinum at 700,000 won, Gold at 300,000 won and Green at 49,000 won.
The Hyundai Card vice chairman indicated that his company intends to attract customers with a wider variety of benefits in spite of the higher annual fees.
“For the first time, Amex will offer the same benefits in Korea as it does globally,” the Hyundai Card vice chairman wrote on Facebook. “You don't need to get Amex cards in America anymore.”
Over the past few years, Hyundai Card has made several efforts to overtake Samsung Card.
In September 2018, the former was chosen as the card firm to serve as Costco Korea's exclusive partner from 2019 to 2029, defeating the latter that had maintained the status since 2000.
Samsung Card has offset the loss through its exclusive partnership with E-mart Traders, maintaining its lead over Hyundai Card. According to industry sources, Samsung Card ranked second in terms of market share during the first half of this year, while Hyundai Card stood at fourth.
In addition, Samsung Card has maintained its status as the nation's only credit card firm listed on the stock market, although Hyundai Card once sought to go public, selecting underwriters for its initial public offering (IPO) in 2019.
The IPO of Hyundai Card has become less likely in the near future, since Affinity Equity Partners and the card firm's other shareholders, which demanded its listing, divested in August by selling their entire stake to Taiwan's Fubon Financial and Hyundai Commercial.