Socar CEO Park Jae-wook, right, and Hyundai Card Vice Chairman Chung Tae-young pose inside a vehicle at the Hyundai Card headquarters on July 22, when the two companies agreed to roll out a private label credit card.
Socar, Korea’s top car-sharing service provider, and Hyundai Card agreed to launch a private label credit card early next year. The two companies signed a partnership agreement on July 22 at the Hyundai Card headquarters in Yeouido, western Seoul to launch the PLCC card and jointly run business operation and marketing campaigns.
Socar, a comprehensive mobility platform, launched business in 2011 in Jeju Island with 100 vehicles. In just nine years, the number of people who signed up for the service surpassed 6 million, propelling Socar to a leader in the local car-sharing market. Socar currently operates around 4,000 Socar zones, pick-up and drop-off areas, with 12,000 vehicles nationwide. With a view to expanding into mobility market, the company has been developing and rolling out new services recently.
Hyundai Card’s partnership agreement with Socar follows a recent series of partnership with other industry leaders such as the Korean Air Lines, Starbucks and Woowa Brothers, a top food delivery service. “Hyundai Card’s PLCC business has been rapidly expanding from retail to airline, delivery service and mobility,” said a Hyundai Card spokesperson. “Hyundai Card’s strong alliance with various partners is expected to make it possible for those partners to collaborate with each other beyond their business areas.”
The Socar-branded private label credit card will provide hefty Socar reward points proportionate to the payments made with the card. Socar customers may use the so-called “Socar Credits” like cash when using the car-sharing service.
Socar and Hyundai Card will proceed with various collaborations for the card. They will analyze card usage data of Socar customers and make a list of online and offline outlets they frequent. Then the card will offer extra credits when customers swipe the plastic at those shopping destinations. The two partners will also work together on brand marketing campaigns. Ever since launching the private label credit card business in 2015, Hyundai Card has clinched partnership with a handful of leading global brands such as Kia Motors, Hyundai Motor, eBay, Costco, Korean Air Lines, Starbucks and Woowa Brothers.
Under the PLCC partnership, the brand owner and Hyundai Card burden product development and marketing costs and share profits together. Card issuers are able to slash costs and gain new customers at the same time. When it comes to conventional credit cards for rewards, card issuers are supposed to manage all expenses and revenues from the card products. Brand partners are only supposed to attract subscribers. PLCCs in Korea can be used at other retailers instead of the branded partner alone, unlike in other countries.