Shinhan Card and Samsung Card are in a fierce competition for the top position in the personal credit sales market. Since last year, Samsung Card has rapidly increased its market share, closing in on Shinhan Card, but for two consecutive months, Shinhan has managed to widen the gap and maintain its lead.
According to the Korea Credit Finance Association on September 27, as of August this year, Shinhan Card holds the top position with a market share of 20.23%, surpassing Samsung Card, which was in first place in June with 20.07%, by 0.16 percentage points.
Personal credit sales refer to the amount transacted by individual or corporate customers using credit cards domestically and internationally. Among these, personal credit sales are considered a key indicator of a card issuer's future growth potential.
The competition between the two companies has intensified this year. The gap in market share, which had widened to 1.72 percentage points in 2023, narrowed to just 0.1 percentage points by the end of last year. In February and March, Samsung Card briefly overtook Shinhan Card to claim the top spot in personal credit sales.
In April, Shinhan Card regained its advantage, but in June, Samsung Card surpassed Shinhan by approximately 18.1 billion won in personal credit sales, reclaiming the lead. However, Shinhan Card regained its position in July and August, leading for two consecutive months.
This fierce competition is attributed to the domestic economic downturn, which has made core business competitiveness increasingly important. Following the amendment of the Credit Finance Business Act in 2012, it has become challenging for card companies to generate revenue from merchant fees, leading them to focus on the personal credit sales market.
Other card companies are also in pursuit. In August, Hyundai Card maintained a market share of 18.82%, the same as the previous month. In contrast, Kookmin Card saw a slight increase of 0.03 percentage points, bringing its market share to 16.06%.
In the upcoming fourth quarter, card companies are expected to launch various partnerships to secure market share. Samsung Card has introduced a new card in partnership with Daiso, following collaborations with Starbucks and Musinsa, and is expanding its partnerships with platforms popular among younger users, such as Toss and Naver Pay. Shinhan Card plans to launch a partnership card with Kurly in October, aiming to attract online grocery shoppers by leveraging Kurly's loyal customer base in premium fresh food and early morning delivery.
Hyundai Card is expanding its portfolio with data science-based private label credit cards (PLCC), while Kookmin Card is diversifying its profitability through auto financing and corporate payment markets.
A financial industry official stated, "As the card industry faces diminishing revenue sources, core business competitiveness is becoming increasingly important. Companies are looking to form alliances with major platforms or introduce differentiated marketing strategies to enhance customer retention."
* This article has been translated by AI.
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