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.
'Boycott Japan' weighs on card issuers
Air Seoul flight attendants promote Woori Card's “J. Shopping” credit card at the company's head office in Seoul in this file photo. After Japan's curb on exports to Korea went into effect, the card issuer stopped selling the credit card released for Korean tourists traveling to Japan. / Courtesy of Air Seoul
By Park Jae-hyuk
By Park Jae-hyuk
A Korean consumer boycott of Japanese products, which has already affected the retail and tourism sectors here, is also dealing a severe blow to domestic card issuers, according to industry officials, Tuesday.
Amid the intensifying anti-Japan sentiment triggered by Japan's restrictions on exports to Korea, local credit card companies have begun suspending various marketing campaigns related to the neighboring country.
Woori Card, for instance, was the first to react.
On July 4, the card-issuing unit of Woori Financial Group decided to stop selling its “J. Shopping” credit card which was released June 28 for Korean tourists traveling to Japan.
The card was supposed to provide discounts up to 5 percent for customers making purchases at Japan's Don Quijote, Bic Camera and FamilyMart.
“Japan was the most-visited country by local tourists, but there were no credit cards focusing on benefits for those who traveled there,” a Woori Card official said at the time the company released the card. “This is why we have launched the credit card.”
On the day when Japan's export restrictions on semiconductor materials took effect, however, the company suddenly notified its customers that it had decided to tentatively suspend issuances of the new credit card and related events.
It said the decision was made to provide its customers with “better services.”
“Those who had already subscribed to the credit card or entered our events will be able to get the services as before,” the company official said.
Other card issuers cited the “social atmosphere” as the reason for their suspension of marketing campaigns related to Japan.
“Although we have not stopped offering benefits to our customers who travel to Japan, we removed the notification of those benefits from our website, considering the current sentiment,” a Hana Card official said.
Until July 24, the card-issuing unit of Hana Financial Group had promoted various discounts to customers who used the company's credit cards at Bic Camera, Matsumoto Kiyoshi and Matsuya Ginza.
Lotte Card also pulled down its notice regarding benefits for travelers to Japan.
Against this backdrop, some other card issuers have faced a backlash from Korean consumers, as they continued their marketing campaigns related to Japan.
Hyundai Card was embroiled in a controversy Tuesday, due to an event regarding sneakers jointly designed by a Japanese designer and Nike.
Through its own M Point Mall, the card firm held an event that day to give its customers the opportunity to buy the limited edition sacai x Nike sneakers.
Consumers, however, criticized the company for holding the event amid the ongoing boycotts of Japanese products.
Hyundai Card said it scheduled the event before the trade conflict emerged.
In addition to Hyundai Card, Shinhan Card and KB Kookmin Card are also facing criticism for their marketing campaigns related to Japan.
Shinhan did not take down a notice regarding benefits for travelers to Japan from its official website and blog.
“Do you think the promotion is appropriate at this moment?” an internet user stated in a post on Shinhan Card's blog.
Kookmin has continued sales of its debit card decorated with the Japanese character “Over Action Rabbit.”
Some consumers blasted the card firm, citing the character's designer who decorated a New Year's card in 2017 with the character and an image of the Rising Sun Flag, considered a controversial symbol here of Japan's military colonialism.