By Kang Seung-woo
Staff Reporter
In line with the government's "green initiative," financial companies ― banks, insurers and securities firms ― came up with a variety of green products.
On being launched, the environment-conscience merchandise got off to a fast start, drawing attention from many consumers, but their popularity proves to be waning.
According to the financial industry, all but a few products have failed to surpass the psychologically-important 100 billion won ($89.58 million) in terms of sales.
Woori Bank, which was the most active in introducing green products, launched seven programs, but, except for two, all of them are posting below 80 billion won in sales.
Shinhan Bank launched a "green" loan service last October, only to see 44.8 billion won in sales, and another product, which hit the market in February for investment in the solar power tower, managed to mark 88.3 billion won in sales.
Korea Exchange Bank (KEB) is selling a lending product for "green growth companies," but its sales have reached 26.9 billion won thus far, and the state-run Industrial Bank of Korea (IBK)'s real estate-secured loans achieved 600 million won.
The insurance sector has suffered from a similar setback, despite a highly-anticipated launch of insurance for cyclists, who do not use vehicles on a single weekday on a regular basis.
However, the results have not lived up to expectations.
Samsung Fire & Marine Insurance's bicycle insurance has sold 12,450 policies, totaling 500 million won, and the number of Dongbu Insurance's products sold was tallied at fewer than 40 since last July.
The insurers insist that the advanced registration system be implemented to compensate for the losses.
A new vehicle insurance system is likely to be released this month; as such registration can confirm the operation of cars. It is expected to get a final nod from the Korea Insurance Development Institute.
The launch of new products has been faltering due to a lack of interest from consumers.
Except for tax-free green savings to be jointly issued by banks in September, there is no plan to launch another.
Despite dismal results, business circles seem to have been overly optimistic because just after being prompted by the government, the banks blindly cranked out many products, which did not easily hook people.
"Most banks are disappointed by the sales so they are not developing new ones," a bank official said.