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www.groovekorea.com / August 2014 32 AbOuT ThE WRITER Paul Sharkie is the Foreign Client Relationship Manager for Shinhan Bank’s Foreign Customer Department. Please visit Shinhan Expat Banking on F acebook for more information. The banking information provided in this column is based on Shinhan Bank policies and may not be applicable to all banks in Korea. — Ed. O ne of the more common conversations I have with customers involves a line of questioning that starts like this: “I think I need a credit card …. How can I get one as quickly as possible?” My initial response to this kind of request is not what you might think. More specifically, I would advise any prospective applicant to consider why they want a card and remind them that, beyond the basic concept of paying your bill on time each month, credit cards are managed a bit differently in Korea. Put simply, the cards offered here generally do not operate on a minimum payment system as they do in other places around the world. Here, the majority of the balance, if not all, must be paid each month. If you fail to do so, or make a late payment, this oversight can negatively affect your credit limit and credit rating much mo re immediately than you might expect if you were living elsewhere. In countries where you are only required to submit a minimum monthly payment, the convenience of having credit is understood to be paired with high interest rates on the remaining balance. While this is fine for some, for others the credit system often results in bills that become unmanageable due to their rising minimum payments. By contrast, Korean credit card policies tend to encourage people to live slightly more within their means. In other words, you should not see your Korean credit card as another source of income. This often means tighter eligibility criteria to get a card in the first place, as well as lower credit limits for new customers or late payers. ThE mONEy COLumN Edited by Matthew Lamers (mattlamers@groovekorea.com) INSIghT Column by Paul Sharkie / Illustration by Rob Green CReDIt CARDS — tHe KOReAN WAY WANt A CReDIt CARD IN KOReA? HeRe IS SOme USeFUL INFORmAtION beFORe AppLYINg