South Koreas Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published: Feb, 2014 | Pages: 104 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights into South Korea's cards and payments industry, including:
Current and forecast values for each category of South Korea's cards and payments industry, including debit cards, credit cards and prepaid cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing South Korea's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of South Korea's cards and payments industry

Summary
The South Korean card payments channel registered growth during the review period (2009-2013) posting a compound annual growth rate (CAGR) of 4.22% to reach 294.4 million cards in circulation by the end of 2013. The card payments channel valued KRW986.0 trillion (US$899.5 billion) in 2013. Changing lifestyle demographics, the increased popularity of online shopping and higher disposable income per capita supported the growth of the volume of cards in circulation. The debit card category occupied the largest share and grew at a review-period CAGR of 4.19%. Over the forecast period (2014?2018) the debit card category is expected to post a CAGR of 1.84%. The credit card category occupied the second-largest share at a review-period CAGR of 2.82%. The credit card category is expected to register a forecast-period CAGR of 1.80%. An increase in household debt burden has prompted the South Korean government to introduce measures to discourage credit card spending.
The government reduced tax deductions on credit card transactions and increased tax deductions for debit and prepaid cards. During the first three quarters of 2011, merchandize credit valued KRW1.6 trillion (US$1.44 billion), whereas during the first three quarters of 2012, that value was reduced to KRW0.1 trillion (US$90 million). Spin-off credit card units are expected to increase competition over the forecast period. Many banks and non-bank firms opt for spin-off credit card firms in association with existing competitors such as telecom operators.
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 2013, and forecast figures for the period up to 2018.
It details the different economic, infrastructural and business drivers affecting South Korea's cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in South Korea's cards and payments industry.
Reason 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 within South Korea's cards and payments industry.
Assess the competitive dynamics in South Korea's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in South Korea.
Gain insights into key regulations governing South Korea's cards and payments industry.

Key Highlights
The South Korean card payments channel registered growth during the review period (2009-2013) posting a compound annual growth rate (CAGR) of 4.22% to reach 294.4 million cards in circulation by the end of 2013. The card payments channel valued KRW986.0 trillion (US$899.5 billion) in 2013.
The debit card category occupied the largest share and grew at a review-period CAGR of 4.19%. Over the forecast period (2014?2018) the debit card category is expected to post a CAGR of 1.84%. The credit card category occupied the second-largest share at a review-period CAGR of 2.82%. The credit card category is expected to register a forecast-period CAGR of 1.80%.
NFC-based platforms for smartphones increased the volume of mobile commerce (m-commerce) transactions in South Korea. SK Telecom and KT jointly sold 250,000 NFC-enabled Samsung Galaxy Notes in December 2011 alone.
An increase in household debt burden has prompted the South Korean government to introduce measures to discourage credit card spending. The government reduced tax deductions on credit card transactions and increased tax deductions for debit and prepaid cards. During the first three quarters of 2011, merchandize credit valued KRW1.6 trillion (US$1.44 billion), whereas during the first three quarters of 2012, that value was reduced to KRW0.1 trillion (US$90 million). Spin-off credit card units are expected to increase competition over the forecast period. Many banks and non-bank firms opt for spin-off credit card firms in association with existing competitors such as telecom operators. In 2010, Hana Financial established a joint venture with SK Telecom, South Korea's leading mobile operator. Similarly, Woori bank span-off its credit card division in March, 2013, while Kookmin bank, part of the KB Financial Group span-off its credit card unit in 2011.

 1 Executive Summary
2 Alysis of Industry Environment, Key Trends and Drivers
2.1 Payment Infrastructure and emerging technologies
2.1.1 Automatic Teller Machines (ATMs)
2.1.2 Point of sale (POS) termils
2.1.3 Internet penetration
2.1.4 Contactless technologies/NFC technology
2.1.5 EMV
2.2 Business Drivers
2.2.1 Growth of online commerce
2.2.2 Retail sales value
2.2.3 M-Payment value
2.3 Economic Drivers
2.3.1 GDP growth
2.3.2 GDP per capita income
2.3.3 Inflation
2.3.4 Low unemployment
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Direct debits
3.1.4 Credit transfers
3.1.5 Cards
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Market Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourists volume
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Alysis by product categories
5.3.2 Alysis by retail channels
6 Alysis of Card Payments and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Alysis by volume of cards in circulation
6.2.2 Alysis by transaction value
7 Alysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Alysis by volume of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Size and Forecast
7.3.1 Alysis by volume of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Size and Forecast
7.4.1 Alysis by number of cards in circulation
7.4.2 Alysis by transaction value
7.4.3 Alysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share alysis
7.5.2 Issuer share alysis
8 Alysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Alysis by volume of cards in circulation
8.1.2 Alysis by transaction value
8.1.3 Alysis by transaction volume
8.2 Transaction Share Alysis by Channel
8.2.1 Alysis by transaction value
8.2.2 Alysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share alysis
8.3.2 Issuer share alysis
9 Alysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by volume of cards in circulation
9.1.2 Alysis by transaction value
9.1.3 Alysis by transaction volume
9.2 Transaction Share Alysis by Channel
9.2.1 Alysis by transaction value
9.2.2 Alysis by transaction volume
9.3 Persol Charge Cards Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
9.3.3 Alysis by transaction volume
9.4 Commercial Charge Cards Size and Forecast
9.4.1 Alysis by volume of cards in circulation
9.4.2 Alysis by transaction value
9.4.3 Alysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share alysis
9.5.2 Issuer share alysis
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by volume of cards in circulation
10.1.2 Alysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Alysis by number of cards in circulation
10.2.2 Alysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Alysis by volume of cards in circulation
10.3.2 Alysis by transaction value
11 Merchant Acquiring
11.1 Merchant Acquirers in the Country
12 Company Profiles of Card Issuers
12.1 Shinhan Bank
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Woori Bank
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 KEB Card
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Samsung Card
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Citibank Korea
12.5.1 Key fincials
12.5.2 Card portfolio
12.5.3 Strategies
13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric's Services
13.5 Definitions
13.6 Disclaimer


List of Tables
Table 1: South Korea ? Payment Channels (KRW Trillion), 2009-2013
Table 2: South Korea ? Revised Loan Loss Reserve Requirements, 2011
Table 3: South Korea ? Market Entry Strategy of Foreign Banks
Table 4: South Korea ? Card Fraud (KRW Billion), 2009-2013
Table 5: South Korea ? Specialized Credit Cards for Women, 2013
Table 6: South Korea ? Cards Targeting Vehicle Owners, 2013
Table 7: South Korea - Cards Targeting Frequent Foreign Travelers, 2013
Table 8: South Korea ? Cards Targeting Retail Shoppers, 2013
Table 9: South Korea ? Cards Offering Benefits on Fincial Services, 2013
Table 10: South Korea ? Cards Targeting Business Customers, 2013
Table 11: South Korea ? Consumer Card Spending by Product Category (KRW billion), 2008 and 2012
Table 12: South Korea ? Consumer Spending through Cards by Retail Channel (KRW billion), 2008 and 2012
Table 13: South Korea ? Card Payments Channel by Card Category (Million), 2009-2018
Table 14: South Korea ? Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 15: South Korea ? Card Payments Channel Size by Transaction Value (KRW Trillion), 2009-2018
Table 16: South Korea ? Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 17: South Korea ? Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 18: South Korea ? Credit Cards Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 19: South Korea ? Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 20: South Korea ? Credit Card Category Size by Transactions Volume (Billion), 2009-2018
Table 21: South Korea ? Persol Credit Cards Sub-Category Size by Volume of Cards (Million), 2009-2018
Table 22: South Korea ? Persol Credit Cards Sub-Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 23: South Korea ? Persol Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2009-2018
Table 24: South Korea ? Persol Credit Cards Sub-Category Size by Transactions Volume (Billion), 2009-2018
Table 25: South Korea ? Commercial Credit Cards Sub-Category Size by Volume of Cards (Million), 2009-2018
Table 26: South Korea ? Commercial Credit Cards Sub-Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 27: South Korea ? Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2009-2018
Table 28: South Korea ? Commercial Credit Cards Sub-Category Size by Transactions Volume (Million), 2009-2018
Table 29: South Korea ? Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 30: South Korea ? Debit Cards Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 31: South Korea ? Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 32: South Korea ? Debit Cards Category Size by Transactions Volume (Billion), 2009-2018
Table 33: South Korea ? Charge Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 34: South Korea ? Charge Cards Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 35: South Korea ? Charge Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 36: South Korea ? Charge Cards Category Size by Transactions Volume (Million), 2009-2018
Table 37: South Korea ? Persol Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018
Table 38: South Korea ? Persol Charge Cards Sub-Category Size by Transaction Value (KRW Trillion), 2009-2018
Table 39: South Korea ? Persol Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2009-2018
Table 40: South Korea ? Persol Charge Cards Sub-Category Size by Transactions Volume (Million), 2009-2018
Table 41: South Korea ? Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018
Table 42: South Korea ? Commercial Charge Cards Sub-Category Size by Transaction Value (KRW Billion), 2009-2018
Table 43: South Korea ? Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2009-2018
Table 44: South Korea ? Commercial Charge Cards Sub-Category Size by Transactions Volume (Million), 2009-2018
Table 45: South Korea ? Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018
Table 46: South Korea ? Prepaid Cards Category Size by Transaction Value (KRW Billion), 2009-2018
Table 47: South Korea ? Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 48: South Korea ? Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 49: South Korea ? Open-Loop Prepaid Cards Segment Size by Transaction Value (KRW Billion), 2009-2018
Table 50: South Korea ? Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 51: South Korea ? Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 52: South Korea ? Closed-Loop Prepaid Cards Segment Size by Transaction Value (KRW Billion), 2009-2018
Table 53: South Korea ? Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 54: Shinhan Fincial Group - Key Fincial Indicators (KRW Trillion), December 2011 and 2012
Table 55: Shinhan Bank - Card Product Offerings and Key Features
Table 56: Woori Bank - Key Fincial Indicators (KRW Trillion), December 2011 and 2012
Table 57: Woori Bank - Card Product Offerings and Key Features
Table 58: KEB - Key Fincial Indicators (KRW Trillion), December 2011 and 2012
Table 59: KEB - Card Product Offerings and Key Features
Table 60: Samsung Card - Key Fincial Indicators (KRW Billion), December 2011 and 2012
Table 61: Samsung Card - Card Product Offerings and Key Features
Table 62: Citi Group - Key Fincial Indicators (US$ Billion), December 2011 and 2012
Table 63: Citibank Korea - Card Product Offerings and Key Features
Table 64: Key Definitions