Card companies race to fill void left by Seoul's expiring transit pass

As Seoul Metropolitan Government's unlimited public transit pass, the "Climate Card," prepares to expire next month, card companies are moving to capture transit-spending customers. With the market expected to shift following the introduction of Seoul's "Climate Card Plus" and the government's "Modu's Card," issuers are rolling out annual fee waivers and cashback promotions to attract new members.

Financial industry sources said Saturday that major card companies including Hyundai Card and BC Card are running promotions targeting new cardholders, offering cashback rewards and annual fee waivers.

Hyundai Card is running a full annual fee billing discount on its Z Work Edition2 card throughout July. The annual fee is 20,000 won ($13) for both domestic-only and international versions. Customers who apply for the promotion and spend at least 100,000 won receive a 60,000-won cashback, with an additional 40,000-won cashback for cumulative spending of 100,000 won or more at overseas merchants — online or in-store — bringing the maximum cashback to 100,000 won.

BC Card is also running a full annual fee billing discount on its BC Baro K-Pass Card throughout July. The annual fee is 6,000 won for both domestic-only and combined domestic-international versions. The card offers 15 percent off public transit and streaming services, 5 percent off at cafes, telecom services and convenience stores, and 3 percent off overseas spending, with discounts capped at 30,000 won per month.

The wave of promotions this month — centered on K-Pass card annual fee benefits — appears driven by expectations that the Climate Card's expiration will funnel new customers toward card issuers.

Seoul has operated the Climate Card as a flat-rate transit pass priced at 62,000 won for general users and 55,000 won for youth. The market began shifting earlier this year when the government launched "Modu's Card" — a K-Pass-based card usable nationwide that automatically applies whichever option is more favorable for the user, either a refund-based or flat-rate model, depending on usage patterns.

In response, Seoul Metropolitan Government said it would introduce "Climate Card Plus," combining the Climate Card and the government's Modu's Card into a single product, and is in final talks with the Ministry of Land, Infrastructure and Transport.

The card's defining feature is that it automatically applies whichever model — refund-based or flat-rate — is more advantageous based on the user's monthly transit spending and usage patterns. Users who spend less than 62,000 won per month on public transit receive a basic 20 percent refund under the Modu's Card framework, with youth, teenagers and low-income users eligible for refunds of up to 53.3 percent. Those who spend 62,000 won or more per month can use Seoul's public transit without limit at no additional cost, as with the existing Climate Card. A separate monthly flat-rate pass worth 100,000 won will also be available for frequent users of metropolitan buses and regional rail.

"Since the Climate Card's final expiration date is still some time away, the marketing competition and scale of promotional events among card companies looking to benefit from the spillover effect are likely to expand further," a financial industry official said.