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Credit card firms in Korea post higher profits on commission gains

Published: 19 Mar. 2025, 10:11 Updated: 19 Mar. 2025, 17:04

Chairman of the Financial Services Commission Kim Byoung-Hwan speaks at a meeting in central Seoul on Dec. 17, 2024. [NEWS1]

Credit card companies in Korea saw their combined net profit rise from a year earlier, helped by an increase in commission income, data showed Wednesday.

The combined net profit of eight credit card firms came to 2.59 trillion won ($1.79 billion) last year, up 0.3 percent from a year earlier, according to the data from the Financial Supervisory Service (FSS).

Their combined revenue increased 5.3 percent, or 1.43 trillion won, to 28.21 trillion won over the cited period.

The ratio of loans classified as substandard or below came to 1.16 percent, up 0.02 percent point from a year earlier.

Meanwhile, the financial regulator said the combined net profit of specialized credit finance companies, excluding credit card firms, came to 2.49 trillion won last year, down 7.9 percent from a year earlier.

There were 181 specialized credit finance firms, according to the FSS. They include installment financing, leasing and new technology venture businesses.

Yonhap