Samsung, KB Kookmin, and Hyundai Card Engage in Fierce Battle for 2nd Place Again This Year (Comprehensive)

Samsung, KB Kookmin, and Hyundai Battle for Second Place Pride

(From left) Kim Daehwan, Samsung Card CEO nominee; Lee Dongcheol, KB Kookmin Card President; Jung Taeyoung, Hyundai Card Vice Chairman

[Asia Economy Reporter Ki Ha-young] The fierce battle for the second place in the card industry, which has been ongoing for several years, is expected to continue intensely this year as well. With the CEO appointments of KB Kookmin Card, Samsung Card, and Hyundai Card, who are competing for the rankings, finalized, the competition for pride between financial holding affiliates and large conglomerates is also expected to intensify.

According to the industry on the 29th, Samsung Card recently appointed Kim Dae-hwan, Head of Management Support at Samsung Life Insurance (Vice President), as the new CEO. Earlier last month, KB Kookmin Card confirmed the reappointment of President Lee Dong-chul.

With Samsung Card making changes through a CEO replacement and KB Kookmin Card emphasizing stability through reappointment, a shift in the strategic battle within the card industry is anticipated this year. Additionally, Hyundai Card, which signed an exclusive contract with Costco last year, has set a goal to rise into the second tier.

As of the third quarter of last year, the gap in overall credit sales market share between Samsung Card and KB Kookmin Card narrowed to 0.14 percentage points. Shinhan Card held the highest market share at 21.93%. Following were Samsung Card at 17.50%, KB Kookmin Card at 17.36%, and Hyundai Card at 15.91%. KB Kookmin Card's market share increased by 0.3 percentage points compared to the third quarter of 2018, and Hyundai Card also rose by 0.4 percentage points. On the other hand, Samsung Card's share decreased by 0.57 percentage points. Net profits as of the third quarter of last year were 282.7 billion KRW for Samsung Card, 251 billion KRW for KB Kookmin Card, and 151.8 billion KRW for Hyundai Card.

The industry analyzed that KB Kookmin Card's expansion of corporate sales and acceleration in auto financing were key factors in the market share increase. Hyundai Card reversed its market share decline by securing the exclusive contract with Costco, which Samsung Card had maintained for 19 years. Samsung Card explained that although its market share slightly declined due to reducing low-profit assets such as corporate purchase cards and installment leases under a sound management policy, its personal credit sales remained at the same level as the previous quarter through strengthened partnerships with Emart Traders despite the end of the Costco partnership.

Hyundai Card expects the effects of the Costco partnership to become visible this year. Costco, with annual sales approaching 4 trillion KRW, generates about 70-80% of its sales through credit cards, making it highly valuable for card companies. Hyundai Card plans to increase its market share through various business strategies, including launching a private label credit card (PLCC) with Korean Air in March.

KB Kookmin Card also plans to continuously expand new business areas to innovate its business structure, building on last year's momentum. In his New Year's address, President Lee emphasized, "Last year, we narrowed the market share gap with the industry leader to the lowest level ever, laying the foundation for a leap to become the number one card company," and added, "This year requires comprehensive business innovation covering both core and new businesses." Accordingly, KB Kookmin Card aims to expand its business lines in Southeast Asia to increase overseas asset proportions and diversify its service lineup by entering the MyData and Personal Financial Management (PFM) markets.

Facing challenges from KB Kookmin Card and Hyundai Card, Samsung Card, with its new CEO, is expected to focus on profitability-centered business restructuring and digital innovation. CEO Kim, a financial management expert, has served as an executive in Samsung Life Insurance's marketing strategy group, head of management innovation group, and chief financial officer (CFO). A Samsung Card official said, "We expect him to accelerate the company's digital transformation with fresh strategies and bold innovation."

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