Foreigner-Only Card

Foreigner-Only Card

Jul 07, 2005

Korea Exchange Bank (KEB) has introduced a foreigners-only ``Expat Card¡¯¡¯ to resolve difficulties that foreigners encounter when obtaining local credit cards, the bank¡¯s card unit said Monday.

It is the first time that a local card issuer has issued cards exclusively for foreigners.

In the past Korean banks gave foreigners a credit limit as high as 200,000 won or required them to make a deposit equal to the credit limit they wanted.

Moreover, they were denied access to Web sites or call centers due to language barriers. They were even unable to read the billing statements.

"Based on all of this, I felt that there was a definite need to develop a product for foreign nationals in Korea. Not a local product modified for use by foreigners but a new product specially designed to their needs," Kevin Kneebone, managing director of KEB Card Division, said.

With the card, foreigners have access to around the clock customer service in English, a fast and efficient approval process and a credit limit that is suitable for their spending needs.

However, not all foreigners living and working here qualify for the card. The card will be issued to ambassadors, diplomats, chief executive officers and other foreigners who pose low credit risks.

Foreigners are currently able to use debit-based check cards that limit spending to the balance of the cardholders¡¯ accounts.

With the new product, KEB Card is targeting a niche market with a niche product. It will target 20,000 potential customers in Korea, Kneebone said.

The Expat card is the first of its kind in Korea as well as in Asia. The card was born in three months from concept to market thanks to KEB¡¯s quick decision-making process and thorough preparations.

"We will no longer conduct broad-based mass marketing campaigns with high costs and low returns. Instead, knowing your customers and target marketing are the best way to win their loyalty," he said.

KEB Card is moving to the overall KEB philosophy of ``not biggest, but best,¡± focusing on "quality growth" in the future.

Kneebone said that the domestic card business is quite advanced but it also needs to focus on target marketing, calling the Korean card industry "a huge market."

Meanwhile, KEB Card turned around this year, posting 72 billion won in profit for the first quarter of this year.

The lender has issued the card in cooperation with the Korea Trade Investment Promotion Agency (KOTRA), which has been looking for a solution to the problem of foreigners obtaining and using credit cards in Korea.

The problem topped the "To-Do-List" of the Ministry of Commerce, Industry and Energy survey in 2003 as the ministry sought ways to improve the living environment for foreign residents.