CARDHOLDERS of UOB and South Korean card company Woori Card will be able to enjoy card privileges from both companies under a reciprocal partnership.
This comes as UOB on Wednesday (Jul 17) inked a memorandum of understanding (MOU) with the subsidiary of Woori Financial Group, marking a first-of-its-kind partnership between an Asean and a South Korean financial institution. Woori Financial Group is one of the largest financial services conglomerates in South Korea.
UOB credit and debit cardholders across Asean travelling to South Korea can enjoy privileges that Woori Card cardholders are entitled to at relevant local merchants, whereas Woori Card’s cardholders who visit Singapore, Malaysia, Thailand, Indonesia and Vietnam will be able to enjoy selected UOB cardholder privileges.
UOB and Woori Card Mastercard holders will be able to partake in the programme by the fourth quarter of 2024, and Visa cardholders are expected to join in the near future.
Under the MOU, the two companies will study their respective cardholder spends in each other’s countries to select the most desirable merchant privileges for their customers, with a focus on categories such as retail, dining, tourist attractions, travel and accommodation.
“The full list of merchant privileges under the reciprocal partnership will be announced in the coming months,” said the companies.
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Some merchants that have already expressed interest in participating include fashion retailer Club 21, Como Group dining establishments and Marina Bay Sands, as well as South Korea’s Shinsegae Duty Free and SPC Group. SPC Group is known for its food and beverage chains such as Paris Baguette, Baskin Robbins and Shake Shack.
Jacquelyn Tan, UOB’s head of group personal financial services, said this partnership will allow the bank’s customers to enjoy the best deals like a local in South Korea, while promoting Asean as a desirable destination for South Koreans.
“This reciprocal partnership underscores UOB’s commitment to serving the lifestyles and preferences of its customers via the travel and entertainment pillars of its cards strategy,” she added.
UOB noted that its card billings in travel and entertainment grew the fastest on the year during the first quarter of 2024. Its customers’ travel spend grew 23 per cent, with cross-border billings increasing 20 per cent, while entertainment spend more than trebled during the same time period.
The bank’s cardholders also see South Korea as a top travel destination. Its Singapore cardholders spent the most in South Korea in 2023, followed by Thai and Malaysian cardholders.
The country ranked second globally last year, in overseas UOB card spend growth, clocking a 60 per cent year-on-year surge.
Andrew Park, Woori Card’s chief digital officer and head of group of platform business, product innovation and IT, said: “By leveraging our ongoing partnerships with key merchants most visited by UOB cardholders, we are planning to develop tailored merchant offers and a seamless fulfilment process for UOB cardholders.”
UOB’s Tan noted in a press conference in South Korea that the bank also recognises Aseans’ travels to other popular destinations.
“We do expect to extend these corridors beyond South Korea to other destinations that we have in hand and hopefully to announce them shortly,” she added.
