SEOUL — Seeking to boost overseas business and expand their young customer bases, South Korea’s major banks have adopted a new marketing trend over recent years…
SEOUL — Seeking to boost overseas business and expand their young customer bases, South Korea’s major banks have adopted a new marketing trend over recent years — using K-pop groups as brand ambassadors.
K-pop celebrities were for some time viewed as an unconventional choice for the banking industry, but partnerships soon rose as an effective way to overcome the conservative and rigid image of the market.
The biggest beneficiary was KB Kookmin Bank, which recently renewed its advertising contract with popular boy band BTS, after a year of successful brand marketing.
“The idea of hiring a young pop group as a model had first triggered a backlash from within the company,” an official of the bank said.
“After all, financial services have always produced advertisements and brand images that underline credibility and stability.”
The bank had previously maintained a longtime sponsorship of figure skating champion Kim Yu-na as brand ambassador, who still models for KB Financial Group’s insurance arm.
“But the case was quite different then, as Kim was a national sports heroine, known for her prudent character and hard work, making her an undisputed choice for our brand image,” the official said.
Despite the initial reservations, the bank’s collaboration with BTS achieved huge success and led to a noticeable rise in the number of young customers, encouraging competitors to follow suit.
