G-Dragon and Park Bo-gum Model Fees Highlight 800 Billion Won Ad Spending by Korea's Top Banks
Korea's five major commercial banks spent more than 800 billion won on advertising and promotion last year. Celebrity endorsement fees included about 3 billion won for G-Dragon and 1.2 billion won for Park Bo-gum.
Last year, the advertising and promotion expenses spent by the five major domestic commercial banks to maintain their brands and marketing exceeded 800 billion won for the first time in history. The growing advertising budgets of the banking sector are leading to model contracts with stars who possess significant public influence, such as G-Dragon, Park Bo-gum, Jang Won-young, Byeon Woo-seok, and Park Ji-hoon.
5 Major Commercial Banks' Advertising Expenses Surpass 800 Billion Won
According to data from the Financial Supervisory Service's Financial Statistics Information System, the combined annual advertising and promotion expenses executed by the five major commercial banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup Bank—surpassed 800 billion won last year.
Hana Bank invested the most in advertising, spending 177.6 billion won. Woori Bank used 177.3 billion won by featuring Jang Won-young as its model, while Shinhan Bank spent 157.6 billion won, KB Kookmin Bank spent 150 billion won, and NongHyup Bank spent around 140 billion won on marketing.
Park Bo-gum 1.2 Billion Won, Byeon Woo-seok Around 1 Billion Won
The banks' advertising budgets in the hundreds of billions of won are being materialized into top star model fees amidst fierce competition for market share. Out of its 157.6 billion won in advertising and promotion expenses last year, Shinhan Bank paid 1.2 billion won as the solo model fee for actor Park Bo-gum.
It is known that Byeon Woo-seok's fee, who was a model for NongHyup Bank, rose approximately twofold compared to the previous year, being adjusted to around 1 billion won based on a one-year contract. Currently, NongHyup Bank is continuing its marketing through an exclusive contract with actor Park Ji-hoon.
Hana Bank, G-Dragon's Model Fee Approximately 3 Billion Won
Hana Bank employed a large number of stars that span across generations, such as Son Heung-min, An Yu-jin, Lim Young-woong, and Kang Ho-dong. In particular, singer G-Dragon's annual model fee is known to reach approximately 3 billion won, being mentioned as the upper limit for model fees in the financial sector.
The capital secured by the banking sector amidst the high-interest rate trend is being injected into marketing costs for market share competition, and those costs are being linked back to advertising contracts with stars familiar to the public.
