Card companies are discontinuing one after another the so-called "value cards" that offer generous benefits such as free airport lounge access and rewards on gift card purchases.
According to the financial sector Tuesday, Shinhan Card will halt new issuance of 14 credit and debit cards starting Wednesday. The cards subject to the suspension include "The BEST F," "Love Platinum#," and "Lesson Platinum#."
The BEST F card was popular among customers with high demand for overseas travel, offering a partnership benefit allowing free access to more than 1,200 airport lounges worldwide. The Love Platinum card has been cited as a "value card" in online communities because it provides a combined monthly discount of 10,000 won in areas such as shopping and dining, even without prior-month spending requirements.
These cards also count gift card purchases toward spending requirements, enabling so-called "gift card finance." Gift card finance is a method in which a consumer buys online gift cards at a discounted price and then converts them into simple-payment points such as Naver Pay, securing card spending records and rewards benefits. In personal finance communities, demand for reissuance continues whenever a card eligible for gift card finance is discontinued.
In the industry, cards with substantial airport lounge benefits are being phased out. The BLISS.7 card from IBK (Industrial Bank of Korea), whose new issuance has already been halted, will also stop renewal issuance starting the 31st of next month. The BLISS.7 card was highly popular for offering Priority Pass benefits allowing unlimited access to more than 1,800 airport lounges worldwide. "The greater the benefits that consumers feel, such as airport lounge services, the greater the burden on card companies," a card company official said. "Overall, the trend is to clear out older products and reorganize into new lineups."
