The report Payments Landscape In South Korea: Opportunities and Threats 2022 gives a detailed insight about the payment industry in South Korea. The report extensively talks about current and forecast values for each market in the Israeli cards and payments industry, including debit and credit cards. The report also includes detailed insights into payment instruments including credit transfers, cards, cheques and direct debit. It also, includes an overview of the country’s key alternative payment instruments. Various government regulations and market drivers of the cards and payment industry are discussed. Different strategies used to market debit and credit cards by the Israeli banks and institutes are analysed. The top market players in the payment industry of Israel include NongHyup Bank, Shinhan Card, KB Kookmin Card, Woori Bank, Industrial Bank of Korea, Samsung Card, Hana Financial Group, KakaoBank, K-Bank, Lotte Card, Visa, Mastercard, China UnionPay, JCB and American Express.
South Korea is an East Asian country which lies in the southern part of Korean peninsula. The country has an estimated population of over 51 million and the capital city of South Korea is Seoul. South Korea is one of the developed economies with high income and has one of the highest Human Development Index. Internet and smart phone penetration here grew rapidly after the Korean war and is one of the highest in the world. Global payments revenue has been increasing in multi-fold despite many disruptions in the market. As customers have become more and more comfortable with swiping cards and paying through mobile phones, the digitalisation of transaction industry is also expected to give way to its infrastructural development. Studies show that online frauds were increasing at an alarming rate in South Korea but the issue has been tackled with various preventive regulations and is encouraging the payments ecosystem to grow at a fast rate. The traditional digital payment methods in South Korea have been replaced with new players whose services are user friendly and diverse.
South Korea uses debit cards primarily for the transactions due to governmental regulations and higher tax reductions for using debit cards. The country faces an increase in household debt, thus the government is encouraging the use of debt-free instruments like debit cards and other prepaid cards. Various new players like Samsung have disrupted the payment market and given rise to various new alternate options. Financial cards in South Korea are expected to grow strongly in terms of volume of transactions, number of cards and the total number of transactions. Government’s initiatives like Coinless Society Project to reduce the cash dependency in the economy will further create a favourable environment for the payments market.
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Ankur Gupta, Head Marketing & Communications