President Kwon Kwang-seok of Woori Bank.
Public attention is being paid to financial products with higher interest rates amid a low-interest rate trend, which is related to the central bank’s lower benchmark rate in the wake of the spread of COVID-19.
Banks are coming up with diverse financial products, offering prime interest rates in conjunction with bank card usage.
Woori Bank began to sell “Our Magic Installment Savings by Hyundai Card” in cooperation with Hyundai Card in April. The financial product reflects on Woori Bank trade and Hyundai Card usage records, offering varying prime interest rates.
Woori Bank has teamed up with Hyundai Card and put on the market Our Magic Installment Savings by Hyundai Card since April. The product carries an annual interest rate of up to 5.7 percent, varying according to card usage records.
Its subscription period is one year, and its monthly installment savings amounts cap is 500,000 won.
Hearing the news on the installment savings product’s unprecedented higher interest rate, as many as 24,000 people signed up for it as of the end of June. Its interest rate consists of a basic interest rate of 1.7 percent per annum, a prime interest rate of 0.5 percent and a special prime interest rate of 3.5 percent.
Beneficiaries of a prime interest rate of 0.5 percent are newcomers of Woori Bank and those who have their monthly pay transferred to the bank.
Those who receive pensions are classified into a category of those who have their monthly pay transferred to the bank.
The provision of a special prime interest rate of 3.5 percent is based on Hyundai Card usage records. Those who meet the Hyundai Card threshold and automatic transfer requirements qualify for the special prime interest rate.
A Woori Bank official said, “Even though money market rates are on the decline, we’ve managed to release a financial product with a higher interest rate based on partnership with other financial institution.” Woori Bank plans to continue to release customer-oriented products and services down the road, the official said.
Woori Bank is also putting on the market the “Won Package,” the representative product of the bank’s contactless financial transaction platform “Won Banking.” The Won Package is a version of simplifying the provision of a prime interest rate, departing from the conventional method of offering a prime interest rate, becoming the subject of keen attention from financial consumers.
“Won Bankbook” for the exclusive use of smartphones is a financial product allowable with freely deposits and withdrawals, carrying a basic interest rate of 0.1 percent per annum.
Woori Bank has released “Our Magic Installment Savings by Hyundai Card” with an annual interest rate of up to 5.7 percent in cooperation with Hyundai Card in April. (Photos: Woori Bank)
Woori Bank Reinstates Securities Operation Department
Woori Bank President Kwon Kwang-suk recently conducted a reshuffle of executives and a reorganization, which included the reinstatement of the Securities Operation Department, six years after its disappearance.
The move may be construed as President Kwon’s determination to raise the bank’s net profit by investing with its own assets, not customers’ money.
Under the reorganization, the Asset Operation Team under the Trading Department will be elevated into the Securities Operation Department, a separate body under the Money Market Group. The move may be closely related to President Kwon’s career, financial market sources said.
President Kwon served as president of Community Credit Cooperatives.
Kwon started his financial career as a freshmen employee with the now-defunct Commercial Bank in 1988.
He is considered to be a seasoned financial expert in investment banking and global business expansion as he maintained a wide network in Korea and abroad. He accumulated experience in investment banking and investor relations.
Kwon served as the chief of staff of former Chairman Park Byung-won of Woori Financial Group, and held positions such as the chief of Woori Bank’s Overseas Cooperation Office, the chief of the IB Group and president of Woori Private Equity.