The Cards and Payments Industry in South Korea: Emerging Trends and Opportunities to 2019

GlobalData’s 'The Cards and Payments Industry in South Korea: Emerging Trends and Opportunities to 2019' report provides detailed analysis of market trends in South Korea's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, credit transfers, direct debits, payment cards and cash transactions during the review period (2010–2014).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2015–2019). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy, recent changes in the regulatory structure, card fraud statistics, and profiles of card issuers operating in the country.

Scope

• This report provides a comprehensive analysis of South Korea's cards and payments industry.

• It provides current values for South Korea's cards and payments industry for 2014, and forecast figures to 2019.

• It details the different economic, infrastructural and business drivers affecting South Korea's cards and payments industry.

• It outlines the industry's current regulatory framework.

• It details marketing strategies used by various banks and other institutions.

• It profiles major banks in South Korea's cards and payments industry.

Key Highlights

• Mobile payments (m-payments) are gaining prominence in South Korea, with banks, non-banks and telecoms companies competing with each other to gain market share. Banks such as Kookmin Bank, Hana Bank and Shinhan Bank have offered m-payment services since 2012, and non-banks such as Naver and Daum Kakao launched m-payment services in the ensuing years. To capitalize on this trend, Samsung is planning to launch its m-payment service, Samsung Pay, in South Korea in the second half of 2015, creating competition in m-payments.

• The South Korean banking industry will block the use of magnetic stripe plastic cards in all the country's 125,888 ATMs from May 2015. Announcing the policy, the Financial Supervisory Service (FSS) cited the need for enhanced security and fraud prevention at ATMs. The shift to a chip card-only policy began in March 2015, following successful trials of chip cards for cash advances and credit card loans at ATMs.

• An increase in household debt prompted the South Korean government to introduce measures to discourage credit card spending. The Financial Services Commission (FSC) increased the daily purchase limit on debit card use from US$2,847 (KRW3 million) to US$5,659 (KRW6 million) from January 2014. The move promoted more frequent use of debit cards at POS terminals, driving transaction values.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to South Korea's cards and payments industry, and each market within it.

• Understand the key market trends and growth opportunities in South Korea's cards and payments industry.

• Assess the competitive dynamics in South Korea's cards and payments industry.

• Gain insights into marketing strategies used for various card types in South Korea.

• Gain insights into key regulations governing South Korea's cards and payments industry.

Companies mentioned

Shinhan Bank

KB Kookmin Card

Samsung Card

Nonghyup Bank

Woori Bank

Hyundai Card

Hana Card

Visa

MasterCard

American Express

Diners Club

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payments Environment

4.2 Alternative Payment Instruments

4.2.1 Naver Pay

4.2.2 Samsung Pay

4.2.3 QuickPass

4.2.4 BankWalletKakao

5 Regulation in the Cards and Payments Industry

5.1 Regulatory Framework

5.2 Anti-Money Laundering (AML)

5.3 Foreign Direct Investment (FDI) Regulations

6 Analysis of Cards and Payments Industry Drivers

6.1 Demographic Drivers

6.2 Economic Drivers

6.3 Infrastructure Drivers

6.4 Business Drivers

7 Market Segmentation and New Product Launches

7.1 Market Segmentation and Targeting

7.1.1 Consumer cards

7.1.2 Commercial cards

7.2 New Product Launches

8 Payment Cards

8.1 Payment Card Analysis

8.1.1 Volume and value of payment card transactions by type

8.1.2 Personal vs commercial cards

9 Debit Cards

9.1 Debit Card Market Analysis

9.1.1 Debit card transaction volumes and values by channel

9.1.2 Debit card scheme shares in terms of number of cards in circulation and transaction value

9.1.3 Debit cards issuers’ market shares

9.1.4 Debit cards comparison

10 Credit Cards

10.1 Credit Card Market Analysis

10.1.1 Credit card transaction volumes and values by channel

10.1.2 Credit card scheme shares in terms of number of cards in circulation and transaction values

10.1.3 Credit cards issuers’ market shares

10.1.4 Credit card comparisons

11 Charge Cards

11.1 Charge Card Market Analysis

11.1.1 Charge card transaction volumes and values by channel

11.1.2 Charge card scheme shares in terms of number of cards in circulation and transaction values

12 Commercial Cards

12.1 Commercial Card Market Analysis

12.1.1 Commercial card comparisons

13 Card Fraud Statistics

13.1 Card Fraud Analysis

14 Card Issuers

14.1 Shinhan Bank

14.2 KB Kookmin Card

14.3 Samsung Card

14.4 Nonghyup Bank

14.5 Woori Bank

15 Prepaid Cards

15.1 Prepaid Card Market Analysis

15.1.1 Prepaid cards comparison

16 Appendix

16.1 Tables

16.2 Contact GlobalData

16.3 About GlobalData

16.4 GlobalData’s Services

16.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: South Korea – Key Facts, 2014

Table 4: Regional Benchmarking of South Korean Payment Cards, 2014

Table 5: South Korea – Mode of Entry of Foreign Banks

Table 6: South Korea – Cards for High-Income Consumers, 2015

Table 7: Cards for Travelers, 2015

Table 8: Cards for Students and the Young Population, 2015

Table 9: Cards for Female Population, 2015

Table 10: Cards for Shoppers, 2015

Table 11: Commercial Card Comparisons and Key Features, 2015

Table 12: South Korea – New Product Launches

Table 13: South Korea – Debit Card Comparisons and Key Features, 2015

Table 14: South Korea – Premium Credit Card Comparisons and Key Features, 2014

Table 15: South Korea – Commercial Card Comparisons and Key Features, 2015

Table 16: South Korea – Prepaid Card Comparisons and Key Features, 2015

Table 17: South Korea – Payment Instrument Transaction Values (KRW Trillion), 2010–2014

Table 18: South Korea – Payment Instrument Transaction Values (US$ Billion), 2010–2014

Table 19: South Korea – Payment Instrument Transaction Volumes (Million), 2010–2014

Table 20: South Korea – Number of Payment Cards in Circulation by Type (Million), 2010–2019

Table 21: South Korea – Volume of Payment Card Transactions by Type (Million), 2010–2019

Table 22: South Korea – Value of Payment Card Transactions by Type (KRW Trillion), 2010–2019

Table 23: South Korea – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019

Table 24: South Korea – Personal and Commercial Card Transaction Values (KRW Trillion), 2010–2019

Table 25: South Korea – Personal and Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 26: South Korea – Personal and Commercial Card Transaction Volumes (Million), 2010–2019

Table 27: South Korea – Number of Debit Cards in Circulation (Million), 2010–2019

Table 28: South Korea – Debit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 29: South Korea – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 30: South Korea – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 31: South Korea – Number of Debit Cards in Circulation by Scheme (Million), 2010–2014

Table 32: South Korea – Debit Card Transaction Values by Scheme (KRW Trillion), 2010–2014

Table 33: South Korea – Debit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 34: South Korea – Debit Card Transaction Values by Issuer (KRW Trillion), 2010–2014

Table 35: South Korea – Debit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 36: South Korea – Number of Credit Cards in Circulation (Million), 2010–2019

Table 37: South Korea – Credit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 38: South Korea – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 39: South Korea – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 40: South Korea – Number of Credit Cards in Circulation by Scheme (Million), 2010–2014

Table 41: South Korea – Credit Card Transaction Values by Scheme (KRW Trillion), 2010–2014

Table 42: South Korea – Credit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 43: South Korea – Credit Card Transaction Values by Issuer (KRW Trillion), 2010–2014

Table 44: South Korea – Credit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 45: South Korea – Credit Card Balances Outstanding by Issuer (KRW Trillion), 2010–2014

Table 46: South Korea – Credit Card Balances Outstanding by Issuer (US$ Billion), 2010–2014

Table 47: South Korea – Number of Charge Cards in Circulation (Thousand), 2010–2019

Table 48: South Korea – Charge Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 49: South Korea – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 50: South Korea – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 51: South Korea – Number of Charge Cards in Circulation By Scheme (Thousand), 2010–2014

Table 52: South Korea – Charge Card Transaction Values By Scheme (KRW Trillion), 2010–2014

Table 53: South Korea – Charge Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 54: South Korea – Number of Commercial Cards in Circulation (Million), 2010–2019

Table 55: South Korea – Commercial Card Transaction Values (KRW Trillion), 2010–2019

Table 56: South Korea – Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 57: South Korea – Card Fraud (KRW Billion), 2010–2014

Table 58: South Korea – Card Fraud (US$ Million), 2010–2014

Table 59: South Korea – Number of Prepaid Cards in Circulation (Million), 2010–2019

Table 60: South Korea – Prepaid Card Transaction Values (KRW Billion), 2010–2019

Table 61: South Korea – Prepaid Card Transaction Values (US$ Million), 2010–2019

List of Figures

Figure 1: South Korea – Payment Instrument Shares by Transaction Value (%), 2010 and 2014

Figure 2: South Korea – Payment Instrument Shares by Transaction Volume (%), 2010 and 2014

Figure 3: South Korea – Total Population and Structure, 2014

Figure 4: South Korea – Internet and Mobile Penetration (Users per 100 Inhabitants), 2010–2019

Figure 5: South Korea – Economic Indicators, 2010–2019

Figure 6: South Korea – Number of ATMs, POS Terminals, and Commercial Bank Branches, 2010–2019

Figure 7: South Korea – Household Final Consumption Expenditure and Retail Sales, 2010–2014

Figure 8: South Korea – E-Commerce Value (US$ Billion), 2010–2019

Figure 9: South Korea – Outbound and Inbound Trip Volume and Spending, 2010–2019

Figure 10: South Korea – Cards and Payments Industry Segmentation by Card Type, 2015

Figure 11: South Korea – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2010–2019

Figure 12: South Korea – Volume and Value of Payment Card Transactions by Type (%), 2010–2019

Figure 13: South Korea – Personal and Commercial Card Transaction Volumes and Values (%), 2010–2019

Figure 14: South Korea – Growth in Debit Card Transaction Values and Number of Cards in Circulation, 2010–2019

Figure 15: South Korea – Debit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 16: South Korea – Debit Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 17: South Korea – Debit Card Issuers’ Market Shares in Terms of Transaction Value (%), 2014

Figure 18: South Korea – Growth in Credit Card Transaction Values and Number of Cards in Circulation, 2010–2019

Figure 19: South Korea – Credit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 20: South Korea – Credit Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Values (%), 2014

Figure 21: South Korea – Credit Card Issuers’ Market Shares in Terms of Transaction Value (%), 2014

Figure 22: South Korea – Credit Cards Issuers’ Market Shares in Terms of Outstanding Balances (%), 2014

Figure 23: South Korea – Growth in Charge Card Transaction Values and Number of Cards in Circulation, 2010–2019

Figure 24: South Korea – Charge Card Transaction Volumes and Values by Channel, 2010–2019

Figure 25: South Korea – Charge Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Values (%), 2014

Figure 26: South Korea – Number of Commercial Cards in Circulation and Transaction Values, 2010–2019

Figure 27: South Korea – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2010 and 2014

Figure 28: South Korea – Number of Prepaid Cards in Circulation and Transaction Values, 2010–2019

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