Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Diners cards will not be issued in Korea
The Hyundai Diners Card. / Courtesy of Hyundai Card
By Park Jae-hyuk
By Park Jae-hyuk
Diners Club cards will no longer be issued in Korea after Hyundai Card decided to end its partnership with the world's first credit card brand, industry officials said Wednesday.
Since Nov. 4, the Hyundai Motor Group's card unit has told customers that its alliance with Diners Club International will end Dec. 31, and it will stop issuing all types of Diners Club cards from Jan.1.
Those who have the Hyundai Diners card can use them until they expire. If cards have to be reissued, their expiration dates will be unchanged.
A Hyundai Card spokesman said the two companies agreed to end their partnership following termination of the contract.
Industry officials, however, regard the unfavorable market environment for domestic card issuers as the main reason for the card issuer's latest decision.
Korean card firms have faced difficulties due to a transaction fee cut and intensifying competition.
In addition, a growing number of Diners Club members keep the card just for free access to airport lounges, without using it to make transactions.
Considering Hyundai Card's mounting losses from such customers, there is little chance of another domestic card issuer joining with Diners Club, according to industry officials.
Although Diners Club International is considering forming a partnership with BC Card, this is aimed at enabling foreign Diners Club card users to make transactions in Korea, not for the issuance of cards here.
BC Card does not issue its own credit cards, as it is a payments processing company.
Diners Club entered the Korean market in 1984, when its then largest shareholder Citigroup opened a local branch ― Diners Club Korea.
After several years of losses, it was taken over by Daewoo Group in 1993. Hyundai Motor Group acquired Diners Club Korea in 2001 and changed its name to Hyundai Card.