Big banks could feel World Cup pinch
Afp, Seoul
Leading South Korean banks are looking at the World Cup in Germany with unusually close interest, knowing that the better the national team performs, the worse their bottom lines could turn out to be. Several top banks, hoping to cash in on World Cup fever sweeping South Korea, launched special accounts offering various interest-rate inducements locked in to South Korea's performance in Germany. As a result, whenever South Korea wins a match, scores a goal, or even when a key player makes a decisive pass, potential profits at top banks take a hit in terms of higher interest payments. Hana Bank, a leading high street bank, introduced a new product named "Victory Korea" in a bid to cash in on World Cup fever. The savings accounts offers customers a bonus interest rate of two percent on top of the standard 4.6 percent annual rate on a maximum deposit of 30 million won (32,000 dollars) if South Korea make it to the quarter-finals. "We sold 15,000 'Victory Korea' accounts within a matter of a few days," said bank spokesman Lee Sung-Gon. In addition, Hana Bank will select 32 people to receive a 10 percent special bonus if South Korea makes it to the semi-finals. South Korea reached the semi-finals of the World Cup on home soil in 2002 but faces a stiffer challenge to repeat the feat in Germany. However, South Korea opened their World Cup Group-G account with a 2-1 victory over Togo on Tuesday in a performance that rekindled optimism that the team could beat France in their next game on Sunday and qualify for the second round of the tournament. Switzerland is the fourth team in the group. Although South Korean success on the field could cost the bank money, Hana Bank spokesman Lee said the extra costs would be considered money well spent. "We don't mind handing out extra interest payments if South Korea performs well," he said. "We indeed hope South Korea do well. In that case, the 15,000 clients who will receive extra interest payments will remember Hana Bank forever and this will help enhance customer loyalty for our bank." Other banks have jumped on the commercial World Cup band wagon. Woori Bank has sold deposit and regular savings accounts whose interest rates depend on the number of goals scored by South Korea's star player Park Ji-Sung. The bank will pay out an additional 0.2 percent on top of the regular 3.8 percent annual rate paid for installment deposits each time Park scores a goal. The maximum bonus rate under this scheme is 0.6 percent.
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