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.
Banks court parents with high-interest savings for children’s Lunar New Year cash
Children dressed in hanbok learn how to perform a New Year's bow at a kindergarten in Daegu, Feb. 12, ahead of the Lunar New Year holiday that lasted from Monday to Wednesday. Yonhap
By Yi Whan-woo
Commercial banks are beckoning parents of minors to manage their children’s sebae money — the cash gifts given during the Lunar New Year in return for bowing to their elders — through lucrative savings options, industry officials said Thursday.
The companies promote products with high annual interest rates, ranging from 5 percent to 10 percent, well above the typical 4 percent or less for standard accounts.
“These companies are expected to attract new customers at the right time,” an industry official said, noting that the Lunar New Year holiday just ended Wednesday.
Among mainstream offline lenders, KB Kookmin Bank offers a savings account with a maximum annual interest rate of 10 percent.
Preferential rates are applied based on the number of children 18 and under and also whether the household receives child allowances.
The product was launched again in November 2025, after its initial debut in August of the same year.
It was introduced to help address Korea’s low birthrate and quickly sold out with a limited issuance of 50,000 accounts.
As for internet-only lenders, KakaoBank gives up to 7 percent yearly interest on its product, which attracted more than 500,000 customers within just four months of launching in September 2025.
In particular, the pace of growth accelerated in the past month, with the number of children holding the accounts tripling and total deposits doubling.
Another internet-only lender, Toss Bank, offers a maximum annual interest rate of 5 percent for its savings accounts.
Parents with children aged up to 16 can open an account and obtain a debit card entirely through the app, without visiting a branch or completing complicated paperwork.
Regional banks are seeking to join the campaign, too.
For instance, Kwangju Bank offers a 5,000 won ($3.40) cash bonus to parents who open an account and a debit card for children under 19 through its app.