Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Korean credit card firms expand services for foreign customers
Foreign travelers wearing traditional Korean hanbok explore a historical site on Jeju Island, Feb. 16. Yonhap
By Lee Yeon-woo
Credit card companies are ramping up efforts to attract foreign customers in response to their growing presence and economic influence, industry officials said Friday.
Among the latest developments is Shinhan Card’s Trip.PASS, a dedicated platform introduced last month. The service is designed to provide one-stop solutions — from identity verification to payment processing — tailored to the needs of foreign residents and tourists in Korea.
Through a verification process, Trip.PASS allows users to create a mobile passport, enabling access to duty-free shops and tax refund services without the need for a physical ID. The platform also supports mobile payments, offers remittance services in Korean won, and links to two types of prepaid cards.
Other card issuers are also entering the space. Lotte Card is collaborating with the Seoul Metropolitan Government to develop specialized tourism products and expand joint marketing initiatives targeting international visitors.
Woori Card has taken a similar step, launching domestic travel programs specifically designed for foreign customers through its travel-focused service, WON Travel.
Two types of prepaid cards linked to Shinhan Card's Trip.PASS platform / Courtesy of Shinhan Card
Until a few years ago, KB Kookmin Card stood alone in offering an exclusive product for foreign nationals. Its KB Welcome Card has been providing practical benefits such as 10 percent discounts at Korea’s three major supermarket chains, as well as 5 percent discounts on public transportation and mobile phone bills.
However, with the foreign customer base growing rapidly, card companies are beginning to shift their strategic focus.
“Following the government's policy efforts, the number of foreign workers and international students living in the country is expected to continue growing,” a credit card industry official said. “Services for both international tourists and long-term foreign residents are expected to continue expanding.”
The number of foreign tourists in Korea returned to pre-pandemic levels in 2024, with 16.37 million foreign visitors recorded. The long-term foreign resident population also surpassed 2 million last year.
Their income levels are also on the rise. As of last May, 88.3 percent of foreign wage earners were making more than 2 million won ($1,379) per month. A recent report from the Migration Research & Training Center showed that this group’s card spending surged by 65 percent between 2019 and 2023.
For credit card companies competing with mobile payment providers for market share, appealing to this expanding group of foreign customers presents a strategic opportunity to regain competitiveness.