Korean Credit Card Market

In the end of the nineties South Korea launched crime-fighting measures against corruption that was extremely threatening. The uncontrollable money flows in the black market made it too complicated for the authorities to lead the economy. In this case the enforcement of cashless forms of payment such as credit cards was one of the possible ways out.
Along with the national banks, a lot of foreign financial organizations came to the Korean markets with a design to invest in further advance of credit card deals. Among them were Citigroup and Chase.
By the end of the year of 2006 $491 billions in individual consumption had been spent with credit cards. At that time it was the greatest result all over the world.
According to the reports of the Bank of Korea the national credit card spending in the year of 2006 ranked the fifth position in comparison with other world leading economies. Moreover, the statistical research showed that an ordinary Korean consumer used about four credit cards in his or her budget.
Just like the U.S. with their constantly rising number of credit card offers, South Korea shows no signs of slowdown. So, every day the rivalry among lenders is on the rise.
Some people can’t understand how Korean lenders induce their clients to apply more and more for new credit cards. The answer is interesting. E.g. Hyundai Motors of Korea together with General Electric have developed their joint Hyundai Card offer. The project allows the clients to buy a car in a form of loan, which is split into three years of repayment in the form of cash back bonus.
The same policy is typical for the companies like Samsung or Shinhan and other Korean chaebols, especially those ones that operate on the high-tech markets.
It is worthwhile to say that various cash back programs are very popular there, because they are profitable to cardholders who save their money, and to issuers who attract new clients.
Despite its popularity cash back reward is far from being the only bonus choice. Citibank together with other major U.S. banks offers its Air Miles discount program. Gasoline rebates, shopping savings – there are plenty of available benefits.
Of course, Korean credit card market isn’t a place of embodied dream. News headlines are full of debt related suicides. The government sporadically tries to put credit cards under its control. Fraudsters are quite numerous like in any developed country …
In brief, Korean economy gives all the possibilities to use your credit card whenever you need it.

About the Author: Patrick Pelland writes his articles mainly on credit card applications. Read about credit cards and mortgage and know more!
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