As it becomes increasingly difficult to find credit cards with attractive benefits, a "hidden gem" card is gaining traction among small business owners. Without any major advertising, IBK Bank's "Business Plus Card" for small businesses has reached a cumulative issuance of 20,000 cards.
According to the financial sector on August 6, over 9,000 cards were issued in the five months since the card's re-launch in March. The total number of cards issued since July of last year stands at 19,965, and it is expected to surpass 20,000 this week. The total transaction amount is around 300 billion won.
This growth is attributed to the card's benefits being shared within small business communities, leading to a steady increase in users without any initial marketing efforts.
The Business Plus Card is a credit card specifically designed for small business owners, operated in collaboration with the Ministry of SMEs and Startups, the Korea Credit Guarantee Fund, and IBK Bank. It allows small business owners to obtain credit cards with limits of up to 10 million won, providing essential funds to address urgent financial needs.
The card offers several benefits, including a waiver of the annual fee for individual business owners and the option for up to six months of interest-free installments. Cardholders can earn 3% cashback on their spending for the first year, which drops to 1% thereafter. Consistent use of the card can also help improve credit scores.
Due to its appealing features, inquiries about eligibility, limits, tax payment options, and usage are frequently posted in online communities for self-employed individuals. The card is seen as essential for managing business expenses while also facilitating tax payments and various operational costs.
While small business owners are showing significant interest, IBK Bank has indicated that the card is essentially a "loss leader" product. The combination of waived annual fees, long-term interest-free installments, and cashback benefits reflects a strong policy finance character. Unlike typical credit card products, the focus is on alleviating the financial burden for small business owners rather than generating profit.
A financial industry official stated, "In a time when it is challenging to find products with good benefits, the relatively differentiated conditions of this card are becoming more prominent. As the benefits become known, issuance continues to rise steadily without additional marketing efforts."
* This article has been translated by AI.
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