Hyundai Card surpassed Shinhan Card last year to achieve the highest share of domestic credit sales for the first time in history. According to the Credit Finance Association, Hyundai Card's annual credit sales in 2024 are projected to total 166.2688 trillion won, making it the industry leader. Credit sales represent the total amount approved by credit cards both domestically and internationally, serving as a key indicator of a card company's competitive strength. This is the first time Hyundai Card has recorded the highest annual credit sales. The number of members surged by more than 510,000 from the previous year, surpassing 12.246 million, thanks to a significant increase in credit sales to personal members. In particular, Hyundai Card's strong growth in overseas credit sales played a significant role. In 2024, the overseas payment amount for Hyundai Card individual members was reported at 35.253 trillion won, an increase of approximately 29.3% compared to the previous year. This represents an overwhelming growth compared to the 1.5% increase in overseas payment amounts for the second-ranked card issuer in this area. In fact, Hyundai Card has not yielded its leading position in the overseas credit sales sector since May 2023. Its overseas credit sales share, which was 18.7% in December 2022, recorded an all-time high of 25.1% in January 2025.
What are the reasons behind Hyundai Card's overwhelming success in overseas credit sales? Industry experts cite the competitive strength of products offering world-class benefits through domestic and international collaborations, a differentiated overseas travel service centered on 'experience', and enhanced accessibility to EMV (Europay, Mastercard, Visa) payments through the first-ever introduction of Apple Pay in the country.
Success factor 1
Product competitiveness secured through partnership with American Express and Korean Air
To strike a strike in bowling, one must hit the 5-pin located right in the center of the third row among the 10 pins. Thus, the 5-pin is referred to as the "king pin." It is crucial to target the king pin in management as well. Hyundai Card successfully targeted king pin customers with high overseas credit sales by securing product competitiveness through partnerships with American Express, the epitome of premium global cards, and Korean Air.
In May 2023, Hyundai Card became the exclusive domestic partner for the American Express "Centurion" design card, further strengthening its powerful premium card lineup. The Centurion design card is a representative premium credit card from American Express, featuring the Centurion (a Roman military commander) engraved in the center of the plate. This has expanded the premium experience for Hyundai Card members globally, resulting in the overseas handling ratio of the "Hyundai Amex Card" remaining four times higher compared to Hyundai Card's overall overseas handling ratio.
Hyundai Card's representative private label credit card (PLCC), the "Korean Air Card," is also a key pillar driving the increase in Hyundai Card's overseas credit sales. Launched in 2020, the Korean Air Card is the first airline-specific credit card in the country. It offers strong mileage benefits and travel-specific perks optimized for customers primarily using Korean Air.
Hyundai Card will introduce the "Korean Air Card Edition 2" in 2024, which further enhances mileage accumulation, airfare discounts, lounge, and valet parking benefits, solidifying its partnership with Korean Air. Based on this, in 2024, the overseas handling amount for Hyundai Card's Korean Air Card saw an increase of 62% compared to the previous year and 297% compared to 2022, reflecting a high growth rate.
The Korean Air Card Edition 2 features unlimited mileage accumulation at a rate of 1 mile per 1,000 won at all domestic and international merchants. Additionally, when purchasing air tickets directly from the Korean Air website, application, service center, or domestic branches, customers can earn between 2 to 5 miles for every 1,000 won spent on specific products. This card also allows the accumulation of 2 to 3 miles per 1,000 won spent at overseas merchants. The only card that provides 3 miles per 1,000 won spent at overseas merchants is the Korean Air Card. Furthermore, the card enhances essential services of travel cards, such as lounge access and valet parking benefits. The Korean Air Card Edition 2 comprises the "Korean Air Card 060," "Korean Air Card 120," and premium cards such as the "Korean Air Card 300" and "Korean Air Card The First Edition 2." The Korean Air Card 120 offers free access to the Incheon International Airport lounge (twice per year), while the Korean Air Card 300 provides access to airport lounges worldwide (ten times per year) free of charge. Notably, those using the Korean Air Card The First Edition 2 can access airport lounges unlimitedly. Starting from the Korean Air Card 120, benefits such as valet parking at Incheon International Airport and major domestic luxury hotels are also available.
Success factor 2
Differentiated overseas travel service that sells experiences
When thinking of Apple, Disney, Lego, and Starbucks, unique experiences beyond mere product and service functionalities come to mind. Disneyland is not just an amusement park; it is a space offering storytelling and emotional experiences. American economists Joseph Pine and James Gilmore suggest through their theory of 'experience economy' that consumers place great value on the experiences they consume. Experiences are the core element of economic value, and the more differentiated experiences corporations offer, the higher added value they create.
Hyundai Card's differentiated overseas travel service is enriching its members' overseas usage experiences. The "Japan Partnership Service," unveiled in June 2023, differentiates itself by focusing on experiences rather than merely providing fee benefits, unlike competing overseas travel services. Notable offerings include access to the share lounge of TSUTAYA, a complex cultural space known as a futuristic bookstore, and admission tickets to the National Museum of Modern Art and the National Western Art Museum, representing Tokyo's high-quality exhibitions. These differentiated benefits have garnered enthusiastic responses, with the number of members utilizing these services increasing 2.5 times in December 2024 compared to July of the same year. Hyundai Card quickly responded to the surge in travel to Japan post-pandemic by introducing the Japan Partnership Service, which saw 780,000 Hyundai Card members traveling to Japan in 2024, marking a 950% increase compared to 80,000 members in 2021.
The Japan Partnership Service is available to all Hyundai Card members. At TSUTAYA, members can use the share lounge at three locations in Tokyo (Daikanyama, Roppongi, Shibuya) for one hour free of charge. At the large retail company Bic-Camera, purchased items can be delivered free of charge to the hotel or airport where the member is staying, alleviating the inconvenience of carrying shopping items during sightseeing. Customers initially had to pay between 1,600 to 2,420 yen (approximately 16,000 to 24,000 won) for this service. Special curated exhibition tickets for the National Museum of Modern Art and the National Western Art Museum are available free of charge for one accompanying person (totaling two tickets). The National Museum of Modern Art hosts high-quality exhibitions featuring renowned artists such as Tadao Ando, Yayoi Kusama, and Issey Miyake, while the National Western Art Museum is filled with originals of Van Gogh, Monet, Renoir, and Rodin. With the opportunity to enjoy leisure time amidst an abundance of books in Japan's representative bookstore lounge, shop hands-free while traveling, and discover art as a new preference, the travel experience becomes even more special. Premium Hyundai Card members can enjoy more benefits. Members holding Hyundai Card premium credit cards who visit the Hankyu Umeda flagship store or Hankyu Men’s store in Tokyo can receive a VIP club card that offers discounts of up to 10% and priority tax-free service for free. They can also use priority tax refund services (tax refund fast track) that reduce waiting times for tax refund at three Hankyu department stores in the Tokyo and Osaka regions.
Hyundai Card's overseas travel service, which emphasizes experience, has a long history. Based on its partnership with the Museum of Modern Art (MoMA) in New York, Hyundai Card has provided benefits of free admission for two accompanying guests when visiting MoMA for the past 20 years. The long-standing philosophy of Hyundai Card, viewing credit cards not merely as payment tools but as "mediators that expand customer experience", has consistently applied in crafting overseas travel services.
The overseas travel concierge service "Travel Desk," launched last October, has also been praised for dramatically enhancing members' travel experiences. Premium Hyundai Card members can conveniently receive various consultations and reservations related to travel, such as flight bookings, hotel recommendations, and local transportation reservations, through the Travel Desk. The service finds vehicles optimized for members' travel routes considering different car insurance and pickup points across countries. If a vehicle breaks down during the trip, the service contacts the provider for swift follow-up assistance. It also offers inquiries on various modes of transportation in travel regions, including rail information operated by Eurostar, TGV, and Liria. Top-tier card members receive customized support for emergency situations such as medical issues or accidents that arise locally. In the event of unexpected medical emergencies, theft, or accidents, they can access professional support services 24/7.
Success factor 3
Improving accessibility to overseas payments with Apple Pay
The 'disruptive innovation' proposed by Clayton Christensen, the professor at Harvard Business School, is regarded as one of the most important theories in corporate management. Leading companies tend to focus on retaining existing customers, but new technologies that they overlook provide better benefits to consumers and can disrupt the market landscape. Tesla's electric vehicles are a prime example of disruptive innovation.
In the domestic payment market, EMV contactless payment is recognized as disruptive innovation. Hyundai Card pioneered the issuance of EMV contactless credit cards in 2017, leading the way in ecosystem development. Currently, all Hyundai Cards support EMV contactless payments.
EMV contactless, named after the initials of Europay, Mastercard, and Visa, is an international NFC (near-field communication) payment standard. Unlike MST (magnetic secure transmission), which requires swiping a card, or QR codes, which require scanning, EMV contactless payments only require putting the card next to an NFC terminal, making it convenient and quick. Transaction information is provided to payment companies via a confidential code, enhancing security. EMV contactless payments saw significant growth during the COVID-19 pandemic, as the ability to settle payments without handing over or contacting a card became recognized as hygienic.
South Korea was once a barren land for EMV contactless transactions, but since Hyundai Card introduced Apple Pay in March 2023, the growth rate has accelerated. The introduction of Apple Pay by Hyundai Card has rapidly advanced the distribution of NFC terminals, allowing domestic credit card members to become accustomed to convenient EMV payments. Furthermore, using Apple Pay enables safer and more convenient utilization of credit card products and services abroad. The accessibility of Hyundai Card members using Apple Pay for overseas EMV contactless payments has significantly increased, driving growth in overseas payment amounts through the synergy of Hyundai Card's product and service competitiveness. This signifies that Hyundai Card's early efforts in adopting EMV contactless payments have finally borne fruit.
A Hyundai Card official noted, "Hyundai Card has provided world-class products, services, and payment experiences without limitations within or outside the country," stating that "this global perspective on business is leading to achievements in various sectors, including the overseas credit sales market."