G-Dragon becomes KEB Hana Bank's newest ambassador, while KB Kookmin Bank just announced that "The Trauma Code: Heroes on Call" star Choo YoungWoo joined their family. Korean banks are signing more Korean actors and K-Pop idols than before, and often, a bank has several celebrity endorsers, which raises a question: why are financial institutions getting famous actors and idols to be endorsers?
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This article will analyze this current phenomenon and will help us understand how the situation reflects on the current Korean society as a consumer.
Korean Society's View on Celebrities
KB Kookmin Bank
Before K-Pop and K-Dramas became popular, athletes were South Korea's most highly regarded public figures. Athletes were considered "ideal sons or daughters" due to their hard work, discipline, and national pride.
Kim YuNa, the beloved figure skating champion known as "Korea's Golden Girl," was a highly iconic figure in South Korea. With unparalleled artistry and an unbeaten competition record, she was a treasure of a nation.
With the Hallyu Wave (Korean Wave), athletes no longer hold a monopoly over public admiration, as used to be the case. Financial institutions, like banks, also noticed this change in society and expanded their endorsement strategies accordingly. Banks used to focus on Baby Boomers and Gen X, but now they are targeting MZ by appointing K-Pop idols as their ambassadors.
The influence of K-Pop idols and Korean actors
KEB Han Bank
Typically, South Korean celebrities have polished public personas that give them a wholesome, well-groomed personality, which connects them to their fans and makes their endorsement effective.
When a celebrity endorses anything, it translates to an aspirational lifestyle, so fans associate certain brands with prosperity, high quality, or wealth security. This emotional connection also often leads to brand loyalty. Fans willingly patronize those endorsed by their idols, ranging from cosmetic products to financial institutions and electronics. Banks also fully leverage this trend and select celebrities who can reach the widest audience.
KB Kookmin Bank
For instance, when G-Dragon endorses KEB Hana Bank, fans identify with him as an embodiment of art and innovation. Contrarily, stars like Choo YoungWoo, who are viewed as honest and charming, make banks more believable and accessible sources as well as increase fans' brand awareness. Banks form a link between finance and popular culture and make banking a lifestyle choice with such connotations.
Targeting the MZ Generation
Shinhan Bank
The popularity of digital banking encouraged Korean financial institutions to sign up more K-Pop idols and Korean actors. Digital banks, which are part of e-commerce and lifestyle applications, entice young consumers such as millennials who prioritize convenience and ease over financial products.
Millennials are more drawn to endorsers because they grew up watching K-Dramas or reality shows and enjoy seeing familiar faces as their celebrities in advertisements.
Gen Zs between 1997 and 2012 are more attracted to K-Pop idols because they are taking over K-Pop groups as well as virtual and social media worlds.
Young Koreans, particularly millennials and Gen Z (MZ generation), opt more toward digital banks because of some real advantages. They enjoy Korea's high mobile penetration, and mobile-first banking becomes a necessity, not a convenience. Digital banks like Kakao Bank, Toss Bank, and Kbank deliver a faceless and user-friendly experience, appealing to digitally inclined ones.
The traditional banks charge fees on transactions and withdrawals, but digital banks offer cost-saving alternatives with excellent interest rates. All the digital banks are allied with mobile payment platforms like KakaoPay and Naver Pay, and thus users are able to shop, invest, and manage finances with ease and convenience of access anywhere, anytime.
NH Bank
MZ Generation took a hybrid path—utilizing digital banks to take care of their daily needs but keeping traditional bank accounts as a stabilizer and provider of major financial decisions.
Therefore, the competition becomes tight for banks and ambassadors from a diverse group of celebrities, ensuring that banks cater to a wide range of consumers. Additionally, banks carefully select their endorsers to align with their brand name and target markets.
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