The Card Industry's New Year Focus Is... 'Digital' and 'Innovation'

Maintaining Low Growth Trend This Year
Focusing on Securing Profitability

[Asia Economy Reporter Ki Ha-young] The card industry emphasized "digital" and "innovation" as their New Year's goals. This is interpreted as a survival strategy for card companies that endured a difficult period last year due to fee reductions, aiming to maintain profitability.

According to the card industry on the 4th, the business environment is expected to remain challenging this year as it was last year. Kim Ju-hyun, Chairman of the Credit Finance Association, stated in his New Year's address, "Due to the significant reduction in card fees last year, credit card companies have seen a deepening deficit in their core credit sales business," adding, "This year, we cannot let our guard down amid unprecedented rapid technological changes and uncertainties caused by the global economy and politics."

Won Ki-chan, President of Samsung Card, also said in his New Year's address, "This year, we expect competition to intensify due to the onset of a prolonged economic downturn and the entry of big tech companies into the financial sector."

Accordingly, the card industry unanimously pledged to pursue "innovation." Lee Dong-chul, President of KB Kookmin Card, emphasized in his New Year's address, "Business innovation encompassing both core and new businesses is necessary," and added, "To differentiate digital competitiveness, it is essential to continuously adopt new technologies and lead the market by reading trends from a fresh perspective." He further stated, "Internally, small innovations for digital transformation must be continuously promoted across all business areas."

Lim Young-jin, President of Shinhan Card, also presented five major agendas for this year: "First-class Shinhan and One Shinhan, strengthening leadership in the payment market, accelerating multi-finance, creating differentiated value in platform business, and evolving core competencies." In particular, Shinhan Card plans to actively advance its MyData business such as Personal Expense Management (PEM) and Personal Financial Management (PFM), as well as innovative financial services like My Remittance and My Credit, and lead a 100% digital card lifestyle linked with hyper-personalized marketing.

Won Ki-chan, President of Samsung Card, proposed, "This year, we must secure the constitution and capabilities to respond to future environments and become a first-class Samsung Card that innovates the future through openness and challenge," suggesting efforts to expand the membership base, strengthen personalized customer experiences, deepen data analysis and digital utilization capabilities, and create new customer value beyond payments and finance.

Jang Kyung-hoon, President of Hana Card, stressed, "From the customer acquisition stage to marketing and settlement, we must build a strong Hana Card with the mindset of becoming a digital payment company through digitalization of all operations," and added, "We need to create new revenue by leveraging strong global sectors, auto installment financing, and customer and payment-related data compared to competitors."

Kim Chang-kwon, President of Lotte Card, urged focusing on establishing a "stable growth structure" and building a "strong organization." Kim said, "We should set more bold and challenging 'Stretch Goals' and strengthen the linkage of department goals through cascading so that all members can immerse themselves in shared objectives." This year, Lotte Card also selected the slogan "PROACTIVER" to share the vision of a new organizational culture.

The Credit Finance Association also promised to support the resolution of pending issues such as merchant fees and prepare for the industry's future. Kim Ju-hyun, Chairman of the Credit Finance Association, stated, "We will conduct an internal review to improve the qualified cost calculation system, which is the basis for merchant fee calculation," and added, "We will also establish legal grounds to operate businesses such as credit evaluation for individual business owners using big data and MyData business."

This content was produced with the assistance of AI translation services.