Finance industry looks to attract pet owners with new services, benefits

By Yi Whan-woo

Pet lovers are spending more to take better care of their animals, prompting credit card companies and insurers to increase the number of benefits for their customers as well as launching products and services tailored to their needs.

According to KB Financial Group’s think tank, a total of 5.52 million households owned companion animals in 2022. The figure accounted for 25.7 percent of the country’s total households, up 2.8 percentage points from the previous finding in 2020.

Spending on veterinary hospitals averaged 787,000 won ($590) over the 2020-22 period, a 319,000 won increase from the 2019-21 period.

Over the cited period, average spending for food, toys, salons, baths and other pet care products and services increased 14,000 won to the overall figure of 154,000 won.

Against this backdrop, Woori Card saw a 160 percent year-on-year increase in 2022 in the issuance of its credit card, which offers a 10 percent price discount on a wide range of animal care services.

Both Samsung Card and KB Kookmin Card also launched credit cards offering 30 percent discounts on spending at veterinary hospitals and pet stores.

The insurance companies have been expanding fast into the pet-related insurance sector, as it is estimated to grow by 20 billion won annually, while the government announced that it would foster it as a strategic industry.

Samsung Fire & Marine Insurance launched insurance that offers 100 percent coverage on surgery and other veterinary services.

Samsung Life Insurance plans to set up a subsidiary that deals exclusively with pet care-related insurance. It also invested in Woorien, a company specializing in scanning devices for pets.