New IC Chip Era

New IC chip era, replacing the current magnetic tape credit card, will get into its stride at the turn of this month. Montex Korea, under the umbrella of MasterCard Co., announced yesterday that it will issue a new card `Montex FreePass Card,` which combines the functions of IC Chip and current credit card, in partnership with Kookmin Bank and Kookmin Card from May 9.

Montex’ ambitious plan has opened a new IC chip era by issuing over 200 thousand card this month. The issuance of the planned 200 thousand cards will catapult the company to rank with 7 major credit card companies. However, Montex Korea has issued only 20 thousand IC chip cards since July of last year.

The hot rush of IC chip in the second half of the last year has calmed down due to the limitation of both actual demands and the marketing ability. Kim Jung-jin, the management director of the company, admitted that overall IC chip card now used in Korea is at best 60 or 70 thousand with an exception of the commuter’s cards. However, he anticipated, ``the plan for the 200 thousand issuance of IC chip card won’t have any trouble since Kookmin Bank and Kookmin Card, which have around 500-600 branches over the nation, had strongly promised to cooperate.`` Montex card can be issued to the persons over the age of 12.

The combination of Montex card with the commuter’s card of Kookmin Card has been appreciated because of the fact that it would expand its utility area to the cyber space as well as the off-line section.

Montex card will help to overcome the limitation of space, by utilizing its credit card function in the real space if the given the proper condition for use, and also by utilizing its IC chip functions in the online space for the purpose of security matter and small settlement. Kookmin PassCard is a most commonly used commuter’s card applied by over 0.8 million users. For the first time ever, Montex FreePass will, for the purpose of security, include a certificate.

There are some good reasons as to why Montex, which runs businesses over 80 countries, drives forward without much hesitation issuing 200 thousand cards in a month in a single Korean market. Firstly, the IC chip price has plunged down to 3000-4000 won from high 10,000. Secondly, it is analyzed that the right place to promise the new IC chip era is Korea where the use of credit card is widespread and the adaptability of the people to a new technology is very high.

Montex related resources said that Montex will focus on the on-line marketing rather than on the off-line market which requires much more expenses for the infra construction than the online business.

Sung Dong-Ki esprit@donga.com