The five major banks (KB Kookmin, Shinhan, Hana, Woori, NH NongHyup) reportedly spent nearly 800 billion won on advertising last year. As banks' performances continue to improve day by day, advertising expenses are also reaching new highs. With a strong performance expected in the banking sector this year and star marketing starting from the beginning of the year, it is anticipated that a significant amount of money will be invested in advertising expenses.
According to the Financial Supervisory Service's statistical information system on the 9th, the advertising expenses of the five major banks were tallied at 781.4 billion won last year. This is the highest figure since the advertising expenses of the five major banks were first disclosed in 2015. Compared to 2015 (379.2 billion won), the advertising expenses of the five major banks have nearly doubled. Looking at individual banks, Hana Bank had the largest advertising expenses at 205.5 billion won among the five major banks. Kookmin Bank's advertising expenses were 157.6 billion won, ranking second. Shinhan Bank (140.9 billion won) and Woori Bank (140.3 billion won) showed similar levels of expenditure, while NongHyup Bank (136.9 billion won) had the smallest advertising expenses among the five majors.
The banks explained that as the scale of the banking industry has grown, advertising expenses have naturally increased. With the increase in bank performance, the cost of advertising inputs has also risen. Moreover, the expansion of new business areas for the banks is another factor driving the increase in advertising expenses. In recent years, banks have been launching new products in areas beyond simple savings and deposits, such as retirement pensions, asset management, and group savings accounts, to attract customers. To raise awareness of new business areas, they are creating more advertisements, which has led to a trend of increasing related expenses.
As the outlook for the banking sector's performance is bright this year, the banks' advertising spending is expected to increase further. A financial industry official noted, "Banks are continuously breaking their previous records, and fierce advertising competition is expected going forward," adding, "The profits banks are earning are so large that they appear to easily bear the costs of hiring top-star models."
The increased available expenses are leading to a competition in star marketing. With the competition among banks for star marketing starting from the beginning of this year, advertising expenses are expected to rise even more. Starting this year, Shinhan Bank has selected singer and actor Cha Eun-woo, Hana Bank has chosen singer G-Dragon, and Woori Bank has appointed 아이브 member Jang Won-young as new advertising models. Banks are aggressively implementing brand advertisements through TV and YouTube with their new faces. They are also engaging in linked marketing by holding various events coinciding with the announcement of new advertising models.
Meanwhile, there are criticisms that banks are neglecting information dissemination advertising while focusing on brand image advertising. Kang Hyung-gu, vice president of the Financial Consumer Alliance, said, "Unlike in the past, banks have recently increased brand advertising featuring celebrities," adding, "It’s hard to find information delivery that benefits consumers." Vice President Kang stated, "If banks are going to increase the money spent on advertising, it should also consider information dissemination advertising that contains public interest such as preventing financial scams or improving consumer awareness."