SC Cheil Bank and Samsung Card create new product

SC Cheil Bank and Samsung Card jointly launched a credit card on Monday. The collaboration came after the two parties joined hands in February to become the first bank and credit card company to do business together.

The credit card offers additional membership points and a special exchange rate to cardholders who spend 300,000 won ($260) or more every month on the card.

The two financiers plan to develop more joint products in the future, ranging from checking and corporate cards to mid-range interest and auto loan programs.

SC Cheil Bank has been operating on a deficit due to falling profitability for the past few years, and even changed its name last week to re-include its old Korean name “Cheil” in order to perk up its retail business.

Samsung Card has also struggled with falling profitability as the government has been pushing the credit card industry to lower transaction commission fees on their small member shops since January.