Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Samsung's financial affiliates to partner up with banks via mobile app
A promotional image for Monimo, a mobile app jointly developed by financial affiliates of Samsung / Korea Times file
By Yi Whan-woo
Samsung's financial affiliates are partnering with commercial banks in a bid to keep up with the rapid digitalization of the financial market, industry sources said Tuesday.
They said that Samsung Financial Networks, a joint brand involving Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card and Samsung Securities, has been consulting with five lenders to attract more users to the network's mobile app Monimo.
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The five lenders are KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and Kbank.
"We've been contacted by Samsung Financial Networks regarding joint cooperation on Monimo," a spokesperson from one of the five banks said on condition of anonymity.
Market observers assess that Samsung's financial services companies jointly offered the banks to form a partnership, as Monimo seems to have plateaued regarding gaining new subscribers and requires outside support for further growth.
They pointed out that banks have a greater potential than Samsung Financial Networks to attract clients in the digital market space, as anyone can be their client, regardless of age, income and other economic and social factors.
Samsung's financial affiliates, on the other hand, have a narrower pool of customers, such as those from the insurance, credit card and securities sectors.
Such limited opportunities restrict the services that can be offered by Monimo.
"You can see that Samsung Financial Networks can't have direct access to a huge pool of banking customers due to a law that separates a company from running banking and commerce businesses at the same time," said Jung Ho-chul of Citizens' Coalition for Economic Justice, a civic activist group. "And it appears that Samsung is attempting to team up with the banks as a way to 'bypass' to expand Monimo subscribers."
Jung referred to the regulation on the separation of industrial and financial capital, which restricts big businesses, mostly based on manufacturing, from owning a bank to ensure it is not exploited as a private safe by those businesses.
Monimo was launched in 2022 with the goal of securing customers from the "MZ" generation, a Korean term referring to millennials and Generation Z.