6 out of 9 credit card firms in Korea appoint new CEOs amid key business challenges

From left are Shinhan Card CEO Park Chang-hun, Hana Card CEO Sung Younger-su, KB Kookmin Card CEO Kim Jae-kwan and NH NongHyup Card CEO Lee Min-kyung. Courtesy of every firm

Six out of 9 bank card firms in Korea have changed their CEOs amid worsening inside and exterior enterprise circumstances, emphasizing the necessity for change, innovation and survival as key themes for 2025.

The brand new CEOs are Shinhan Card CEO Park Chang-hun, Hana Card CEO Sung Younger-su, KB Kookmin Card CEO Kim Jae-kwan, NH NongHyup Card CEO Lee Min-kyung and Woori Card CEO Jin Seong-won.

Kim Yi-tae, the designated CEO of Samsung Card, is anticipated to formally take workplace in March.

Regardless of improved performances in 2024 in comparison with 2023, the CEO reshuffles are a results of the rising uncertainties within the present enterprise setting.

Key challenges embrace the rising intensification of the „massive blur“ phenomenon, the place the strains between monetary and nonfinancial sectors are more and more blurred, primarily as a consequence of heightened competitors from info technology-based cost firms comparable to Naver Pay, Kakao Pay and Toss.

As well as, one other soon-to-be-implemented discount in bank card service provider charges is inflicting considerations a couple of seemingly decline in earnings.

Service provider charges might be decreased on Feb. 14 by as much as 0.1 proportion level, marking the primary such lower in card charges since 2022. A discount in card charges negatively impacts one of many key income streams for bank card firms.

The Monetary Companies Fee estimates that the brand new discount in service provider charges will result in a lower of roughly 300 billion received ($206 million) in annual service provider payment income.

In gentle of those challenges, the bank card business is making modifications by appointing new CEOs, aiming to drive transformation and innovation.

In his inaugural speech, Park Chang-hun, the brand new CEO of Shinhan Card, the nation’s largest bank card agency, emphasised the significance of cost course of innovation and increasing market place via cost competitiveness, which in flip results in sustainable profitability.

“If we’re to create one thing that can shake the market, the one key’s to attempt many various issues. It’s troublesome, however attaining that is innovation, and it’s the motive we’re right here and a vital situation for our survival,” he mentioned.