The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Homeless women struggle to find place to spend night

  • 3

    More than dozen chaebol scions indicted on alleged drug use

  • 5

    People attempt to cut surging heating costs with creative solutions

  • 7

    Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film

  • 9

    Life prisoner sentenced to death for beating inmate to death

  • 11

    'I was a stock investment addict': psychiatrist seeks to help addicted people through his book

  • 13

    Korea's childbirths hit record low in Nov.

  • 15

    PHOTOSAnother day of heavy snowfall in Korea

  • 17

    Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters

  • 19

    S. Korea to increase joint air defense exercises following N. Korean drone incursions

  • 2

    Koreans stunned by spike in heating costs

  • 4

    Heavy snow hits Seoul, surrounding areas

  • 6

    Netflix series 'The Glory' draws focus to real school bullying

  • 8

    Inflation weighs on households

  • 10

    Kim Hyun-joo says humanity is at heart of action film 'Jung_E'

  • 12

    INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery

  • 14

    Jang Keun-suk steps out of his comfort zone with 'The Bait'

  • 16

    Gov't to double subsidies for vulnerable households as energy bills soar

  • 18

    BLACKPINK sets 6 more Guinness records

  • 20

    TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Sat, January 28, 2023 | 13:10
Economy
No more cards please!
Posted : 2014-01-21 16:29
Updated : 2014-01-21 16:29
Kim Rahn
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Financial Services Commission Chairman Shin Je-yoon looks at his computer at a Cabinet meeting in the government complex in Seoul, Tuesday. Shin said he will take responsibility for the consumer data theft case that hit the local financial industry. / Yonhap
Financial Services Commission Chairman Shin Je-yoon looks at his computer at a Cabinet meeting in the government complex in Seoul, Tuesday. Shin said he will take responsibility for the consumer data theft case that hit the local financial industry. / Yonhap

Credit card industry shakeup may reverberate into financial sector


By Kim Rahn

The massive personal information leaks that hit three credit card companies may reshape the whole card industry, as their market shares are likely to fall amid public distrust.

Such a shakeup in the credit card industry may also impact the affected firms' parent financial groups and sister banking units.

According to the three companies in question, KB Kookmin Card, Lotte Card and NH NongHyup Card, more than 1.1 million customers have requested cancellation or reissuance of their credit cards in the last two days through Tuesday.

More than 6.1 million people have checked whether their information was stolen at the companies' websites, so the number of cards cancelled or reissued is likely to increase.

The whole card industry's dynamics now depend on the next steps to be taken by customers who canceled their credit cards with the three firms ― card firms' market shares can be changed according to what other card companies the clients choose.

Shinhan Card and Samsung Card may benefit from the crisis, as it was reported that the data thief, an employee of the Korea Credit Bureau, a credit information service provider, attempted to steal the information at Shinhan and Samsung as well but failed due to their strong encoding systems.

Shinhan, which was the top player with a market share of 20.8 percent as of September, may maintain its No. 1 title. KB Kookmin Card, which was second with a market share of 14.6 percent, may be overtaken by the third player, Samsung, which had a 12.2-percent market share.

"The card market has been an oligopoly one, with a small number of big players sharing the market. But Kookmin Card, one of the major players, was hit hard by the information-leak scandal. That may be beneficial to other players," Shin Bo-sung, a researcher at the Korea Capital Market Institute, said.

Hyundai Securities analyst Koo Kyung-hwe said the incident may decrease the use of credit cards in general.

"Many people have multiple numbers of credit cards, although they use only one or two. With this case as momentum, people may decide to have only a minimum number of cards. Some may prefer cash, so the total amount of card payment can be cut," he said.

Koo said the incident will be unfavorable to the three companies in many ways, with potential future lawsuits from customers and reputation damage.

Shin said the information leaks may not directly affect the banking sector. "It is relatively easy to cancel or change a credit card. But with a bank, customers usually have various transactions including deposits, funds and loans, so it is not easy for them to change bank transactions to other banks."

Researcher Kim Woo-jin at the Korea Institute of Finance said Korean financial firms did not pay much attention to compliance or internal control systems. "Executives of financial companies these days have greater focus on the issue than before, but they have not actually spent enough money to improve these systems," he said.

About KB Financial Group's case, where customer information of not only KB Kookmin Card but also Kookmin Bank was stolen, Kim said holding companies of financial groups in Korea have failed to play the role of control towers in information-sharing among affiliates.

"They should see the affiliates as a whole entity, grasp the flow of information and protect the information from going out of the entity."

Emailrahnita@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
2Seoul to work with Hanoi to pursue peace on Korean peninsula Seoul to work with Hanoi to pursue peace on Korean peninsula
3Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities
4More Korean manufacturers enjoy Georgia's hospitality More Korean manufacturers enjoy Georgia's hospitality
5SK E&S retains gov't support for Barossa gas project in Australia SK E&S retains gov't support for Barossa gas project in Australia
6Superintendent of Seoul Education Office gets suspended jail term Superintendent of Seoul Education Office gets suspended jail term
7Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event
8KT&G aims to become global top-tier company KT&G aims to become global top-tier company
9LGES to capitalize on US IRA, Tesla partnership to continue record earnings LGES to capitalize on US IRA, Tesla partnership to continue record earnings
10Middle East 'sales diplomacy' picks up speed Middle East 'sales diplomacy' picks up speed
Top 5 Entertainment News
1Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
2Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
3Jang Keun-suk steps out of his comfort zone with 'The Bait' Jang Keun-suk steps out of his comfort zone with 'The Bait'
4BLACKPINK sets 6 more Guinness records BLACKPINK sets 6 more Guinness records
5TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride' TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group