SC First Bank has launched a product that pays the after-tax interest on a time deposit at maturity in Korean Air mileage.

SC First Bank said on Monday it partnered with Korean Air to launch the "SC First Korean Air Mileage Deposit" and will hold a launch event through Oct. 31.

The product is a time deposit that converts the after-tax interest at maturity into Korean Air mileage, paid in increments of 10,000 won. SC First Bank said it is the first commercial bank to launch a product that pays deposit interest in airline mileage.

Customers can choose a term of 6 months or 12 months. The base interest rate is 3.55 percent a year for a 12-month maturity and 3.15 percent a year for a 6-month maturity.

A preferential rate of 0.1 percentage points applies if the deposit amount is at least 100 million won or if the customer is rated at least as an SC First Bank PB customer at the time of 가입. With the preferential rate, the maximum rate is 3.65 percent a year for a 12-month maturity and 3.25 percent a year for a 6-month maturity.

The deposit amount per account can be 10 million won, 30 million won, 50 million won or 100 million won. There is no limit on the number of accounts a person can open, and a customer can deposit up to 1 billion won in total.

To mark the launch, SC First Bank will provide all customers with up to 5,000 additional miles depending on the deposit amount through Oct. 31.

If first-time customers also sign up for investment products, 10 winners will be selected by lottery to receive 10,000 miles each. The bank will also select 3 customers by lottery among those who deposit at least 100 million won to receive either a Korean Air round-trip ticket to Phuket in prestige class or a round-trip ticket to Guam in economy class.

Jae-won Jung (정재원), head of the Secured Loans and Deposit Products Division at SC First Bank, said, "We hope customers will accumulate Korean Air mileage through deposits and also gain travel opportunities."