UOB and Woori Card partner to fuel ASEAN-Korea travel boom

UOB and South Korea’s Woori Card have announced a strategic partnership to capitalise on the growing demand for travel between Southeast Asia and South Korea. Launching in the fourth quarter of 2024 for Mastercard holders and later for Visa cardholders, the partnership will offer a range of reciprocal card benefits designed to enhance their travel experience.

This “first-of-its-kind” collaboration brings together UOB’s eight million ASEAN cardholders and Woori Card’s 12 million South Korean cardholders. Woori Card, established in 2013 from Woori Bank’s spin-off, has become a key player in South Korea’s credit card industry, with over KRW 111 billion ($80 million) in net income last year. In 2023, Woori Card established its payment network, Woori Pay, that allows QR payment through the card app without having to use a physical card. The company is further expanding its presence in international markets like Indonesia, and enhancing its digital and customer-focused offerings.

Data from the ASEAN-Korea Centre underscores the immense potential of this partnership. Within the past year, 4.3 million South Koreans travelled to ASEAN countries, while 2.1 million ASEAN travellers visited South Korea.

UOB reported a significant 60% year-on-year increase in spending by its ASEAN cardholders in South Korea, highlighting the country as the top Asia Pacific destination for foreign exchange spending. Jacquelyn Tan, head of group personal financial services at UOB, revealed that Indonesian cardholders drove the highest growth in 2023, with spending nearly tripling compared to 2022. Malaysian cardholders followed suit, nearly doubling their spending, while Singaporean cardholders saw a healthy increase of almost 60%.

In 2023, South Korea ranked among the top 10 countries for visitor arrivals to Singapore, with a 105.1% surge in tourism dollars compared to 2019. Travel to South Korea will continue to boom, with Mastercard also listing the country among the top 10 global trending destinations over the past 12 months.

Tan said: “What excites us at UOB is the possibility of our partnership. It is the first of its kind between ASEAN and a South Korean financial institution.”

Andrew Park, chief digital officer and head of group of platform business, product innovation and IT at Woori Card, echoed this enthusiasm: “This is not just an exchange of two banks’ offers. This is a joint venture to create a brand-new, different type of customer experience.”

Jacquelyn Tan, Head of Group Personal Financial Services at UOB

Andrew Park, Chief Digital Officer and Head of Group of Platform Business, Product Innovation and IT at Woori Card

UOB hinted at an even broader cross-border strategy. Tan explained: “We recognise that ASEAN [nationals] travel outside ASEAN markets. We expect to extend these corridors beyond Korea as well.”

According to UOB, Japan had the most significant increase in cross-border spending in 2023, with cardholder transactions increasing by 950% compared to 2022. The bank expects travel momentum for Japan to remain strong, with a record 114,000 Singaporeans visiting Japan in December 2023, according to the Japan National Tourism Organisation.

Australia is also on UOB’s radar among the top five destinations for UOB cardholder spending outside of ASEAN. Based on Mastercard’s travel data, Australia ranks highest globally in the share of tourism spending on experiences and nightlife.

While this is the first known strategic partnership between an ASEAN and South Korean bank, previous initiatives, like Hana Bank’s Global Loyalty Network, have provided cardholders with travel benefits through global partners. The specific details regarding the reciprocal benefits from UOB and Woori Card remain under wraps, promising a range of offerings, including retail, dining, attractions, and travel-related perks. With UOB’s integration of Citigroup assets yet to be finalised in Vietnam, this rollout is expected to benefit existing UOB cardholders in ASEAN, prioritising a seamless and intuitive experience for users.