콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy General

Print

Korea's credit card market : Structure and reforms

Related Document
Frame of Image ter having to enter into separate merchant contracts with each brand. All the while the brands themselves forgo considerable costs in promoting and managing their brands and relationships. Such market structure problems can be alleviated through brand integration, but current conditions do not lend themselves well for adopting the necessary measures to make it so. But in planning for the medium and long term, related policies should start to be moved along to raise market structure efficiency and to keep with global trends and developments. In the immediate future, greater competition in the distribution market can be spurred and would likely result among the credit card brands were a merchant member pooling system be introduced where a merchant member could do with but one contract with one brand.
* Opinions expressed are those of the author and do not necessarily reflect the official positions of the Korea Institute of Finance.
The credit card industry in Korea lags behind those of other countries in Korea's credit card industry falls behind those of other countries in terms of cost efficiencies despite having grown rapidly during the last decade. terms of cost efficiencies in spite of its rapid growth during the last 10 years. In the US and most other countries, the consolidation and integration of the many independently-operated credit card brands into Visa and MasterCard, for example, have allowed benefits to accrue from lower costs and economies of scale, because the va


Full Text
Title Korea's credit card market
Similar Titles
Sub Title

Structure and reforms

Material Type Reports
Author(English)

Lee, Jae-Youn

Publisher

Korea Institute of Finance

Date 2011
Journal Title; Vol./Issue Weekly Financial Review:20/39
Pages 12
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < General
Holding Korea Institute of Finance

Abstract

Despite the extraordinary asset growth of domestic credit card businesses during the last 10 years,
the nine credit card brands in Korea have not been able to sufficiently capitalize on their economies of scale as a result of the competition in the credit card market. Member merchants are also seeing growing complexity in managing their fees payable after having to enter into separate merchant contracts with each brand. All the while the brands themselves forgo considerable costs in promoting and managing their brands and relationships. Such market structure problems can be alleviated through brand integration, but current conditions do not lend themselves well for adopting the necessary measures to make it so. But in planning for the medium and long term, related policies should start to be moved along to raise market structure efficiency and to keep with global trends and developments. (The rest omitted)