Korea Credit Cards

Korea credit cards are the most popular mode of payment for South Koreans. Major industry players, Shinhan and BC Card, offer a range of credit card options with exclusive rewards. Availability of POS terminals at all major shopping destinations and the ability to transact online have led to the success of Korea credit cards.[br]

Korea credit cards are the most popular mode of payment for South Koreans. Major industry players, Shinhan and BC Card, offer a range of credit card options with exclusive rewards. Availability of POS terminals at all major shopping destinations and the ability to transact online have led to the success of Korea credit cards.[br]

The Korea Credit Cards Industry

By 2008, 92 million credit cards were in circulation in South Korea, according to data released by the Bank of Korea. Since the 1990s, the government’s pro-active initiatives to curb corruption have led to the tremendous growth of the banking sector. In the early 2000s, the government also promoted the use of credit cards through credit-intensive policies. According to a BBC report, an average South Korean possessed four credit cards in 2003. An article published in The New York Times on December 12, 2007 declared South Korea as ‘one of the world’s most credit-friendly countries’.

 

However, excessive credit card usage propelled the Korean economy towards major financial crisis. As average credit card users acquired lavish spending habits and the number of defaulters began to increase. Thus, debt management became a major concern for both the financial institutions and the government. The following years saw debt write-offs and adherence to strict standards for credit card issuance.

Korea Credit Cards Issuers

Shinhan is the largest Korea credit card issuer, according to the Nilson Report, 2008. The company offers diverse credit card products to meet individual credit needs. The company operates in association with Shinhan Capital. Major merchandizing outlets also partner with service providers to offer affiliate cards to loyal customers. BC Card holds the second position in purchase volume for credit cards. The two banks own a major portion of the huge Korea credit cards industry.[br]

Korea Credit Cards: Payments and Interest Rates

Here is some essential information about payments and interest rates as applicable on Korea credit cards:

• Monthly interest rate is charged on the due amount. However, the interest rate differs among different cards and issuers.

• There is a free interest period of around 50 days for payments made through credit cards.

• The card becomes inactive if the minimum payable amount is not paid off before the last date.

• Most banks allow direct debit of credit card payments from the bank account to prevent defaults.