Value context and insight. lkm@koreatimes.co.kr
Card firms turn to foreign customers amid demographic changes, market saturation
International students carry banners with messages of hope, good luck and happiness at Yeungnam University in Gyeongsan, North Gyeongsang Province, Monday. Yonhap
By Lee Kyung-min
Credit card firms are increasingly turning to foreign customers, prompted by demographic shifts and declining growth prospects in the domestic consumer base, market watchers said Tuesday.
Low birth rates and eroding household purchasing power due to rapid aging have also weighed on the local market.
The industry has identified foreign residents as a key growth driver, expanding non-face-to-face card issuance, financial products and payment infrastructure tailored to non-Korean users.
According to financial industry data, card spending by foreign customers came to about 19.2 trillion won ($13.2 billion) in 2025, up more than 80 percent from 10.5 trillion won in 2023.
Card companies are simplifying issuance processes through digital channels to make things more convenient for foreign customers.
Woori Card recently launched a mobile card application service for foreign customers. They can apply and have their card issued without in-person visits. Visa eligibility checks and income verification are automated and services are available in English.
Shinhan Card is targeting not only foreign residents but also tourists, workers and international students. It has eased issuance requirements and partnered with overseas remittance fintechs.
BC Card has launched a simplified payment service that allows foreign users to make online and offline payments using passport authentication. Tourists and short-term visitors without alien registration cards can also use the service.
Hana Card has introduced multilingual chat-based customer support using translation services powered by artificial intelligence (AI) to improve accessibility.
However, the trend brings risks, too.
Foreign customers’ income and residency verification is often more difficult than for domestic users. Their length of stay can be unpredictable and identity theft-related fraud concerns can linger. Card firms are strengthening fraud detection systems to verify visa status in real time, seeking to limit losses after customers leave Korea.
“Foreign customers are emerging as a major customer base,” an industry official said. “As non-face-to-face issuance expands, risk management and post-issuance controls must evolve just as quickly.”
The foreign population has been rising steadily, reaching an all-time high of around 2.83 million as of October last year.
In 2024, the number of international students in Korea reached 208,962, up from 91,332 in 2015. By nationality, Chinese students formed the largest share at 34.5 percent.