Financial regulator plans to review whether Samsung breached marketing patents


The dispute between Hyundai Card and Samsung Card over alleged mimicry of marketing concepts has resurfaced at a level requiring arbitration by the regulator.

Hyundai is publicly accusing Samsung of copying customer benefits of its popular Hyundai Zero Card with its Samsung Card 4.

Samsung Card on Tuesday sent a letter to its rival Hyundai rejecting the argument on five grounds

“The letter we sent to Hyundai Card was a reply to the accusation initiated by Hyundai. Claims made by Hyundai show that they lack an understanding of patent rights,” a Samsung Card official said.

Hyundai Zero Card, launched in November, and the Samsung Card 4 that followed in March both offer a 0.7 percent discount on every transaction made with the cards and interest-free payments for up to three months. While Samsung called the identical rate of discount and benefits a “strategy overlap,” Hyundai says that Samsung has a history of copying marketing strategies from Hyundai.

“With Samsung’s Raume Card from 2009, it was clear that the product was a copycat of Hyundai’s Black Card for high-end customers. We have dropped a legal suit before but the situation now requires us to take further action,” a Hyundai spokesman said.

The Financial Supervisory Service said it will review the case to see if financial products launched earlier than others are subject to patent rights.

“We hope Hyundai Card and Samsung Card resolve the dispute before we have to intervene. But proving a marketing strategy is exceptionally creative in the financial industry is quite difficult,” a FSS official said.

Hyundai Card claimed that Samsung’s idea of hosting “Select Concert” featuring stars from abroad is the exact same marketing concept Hyundai applied under “Hyundai Super Concert.”

Hyundai released its Black Card in 2005, which offers upgrade benefits to first-class seats for frequent flyers on top of discount benefits at luxury stores. Samsung launched a similar product called Raume in 2009 which provides nearly identical benefits under the same membership fee of 2 million won.

By Cynthia J. Kim (cynthiak@heraldcorp.com)