Press Release

Emerging Opportunities in South Korea's Cards and Payments Industry


January 17th, 2013

Global Information Inc. would like to present a new market research report, "Emerging Opportunities in South Korea's Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape" by Timetric.

The South Korean cards and payments industry grew at a CAGR of 6.39% during the review period (2008 - 2012). The debit card category accounted for a CAGR of 5.21%. Over the forecast period (2013 - 2017) the debit card category is expected to grow at a CAGR of 4.02%. The credit card category occupied the second-largest share during the review period and grew at a CAGR of 7.29% and is expected to grow at a CAGR of 2.24% over the forecast period. The growth of credit card category will be facilitated by the emergence of non-bank card issuers. The prepaid card category grew at a CAGR of 7.97% during the review period and is expected to grow at a CAGR of 4% over the forecast period. The charge card category posted a CAGR of -4.95% in volume terms in 2011 owing to a declining demand from the corporate segment and is anticipated to decline at a CAGR of -2.22% over the forecast period.

NFC-enabled devices issued by telecom companies to increase scope of mobile payments

Mobile commerce transactions are expected to record positive growth as telecom operators introduce NFC-based platforms for mobile devices. SK Telecom and KT jointly sold 250,000 NFC-enabled Samsung Galaxy Notes in December 2011 alone. Mobile operator KT rolled out NFC-enabled SIM cards in 2010 and South Koreas third-largest mobile operator LG U+ also rolled out NFC phones such as the LG Optimus. KT has estimated that the cumulative sales of NFC-enabled phones sold by all operators will reach 20 million by the end of 2012. Telecom companies are also replacing traditional SIM cards with NFC-enabled SIM cards which is expected to increase scope of card-based payments.

Government efforts and customer deleveraging to decrease scope of credit cards

An increase in household debt has prompted the South Korean government to introduce measures to discourage credit card spending. The government reduced the amount of tax deducted from credit card transactions and increased the level of tax deducted from debit and prepaid card expenditure. During the first three-quarters of 2011, merchandize credit valued KRW1.6 trillion (US$1.4 billion). Comparatively, the merchandize credit offered by credit card companies during the first three-quarters of 2012 reduced to KRW100 billion (US$90 million).

Key highlights of this title

Government efforts and customer deleveraging to decrease scope of credit cards; Tax reforms to positively impact the debit card category; Spin-off credit card units increase competition in the credit card category; NFC-enabled devices issued by telecom companies to increase scope of mobile payments


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Product Code : 259342