The South Korean card payments market is now expected to grow at a compound annual growth rate (CAGR) of 3.7% over 2025-29 to reach KRW1,510.2 trillion ($1.1 trillion) by the year 2029, supported and enabled by high card penetration, steady payment infrastructure, and government backing for cashless payments, reveals GlobalData, a data and analytics company.
GlobalData’s Payment Card Analytics reveals that total card payment value in South Korea expanded by “4.5% in 2024 to KRW1,255.2 trillion ($933.9 billion), driven by rising card usage frequency and growing preference for electronic payments.”
The value is estimated to rise by a slower “3.8% in 2025 to KRW1,303.4 trillion ($969.8 billion).”
Poornima Chinta, Senior Banking and Payments Analyst at GlobalData, comments:
“South Korea’s card payments market is highly mature yet continues to expand, underpinned by near-universal banking access, high financial literacy, and extensive POS infrastructure. The average consumer holds more than six cards and uses them nearly 100 times a year, reflecting entrenched cashless habits. Government initiatives supporting electronic payments, coupled with banks’ aggressive reward programs, are reinforcing long-term growth in card-based transactions.”
Debit cards remain the leading product in circulation and “are deeply entrenched in the domestic card payment system, with penetration reaching 343.1 cards per 100 individuals in 2025.”
Despite this, they account for just “20.1% of total card payment value in 2025.”
But debit card usage is expected to grow reinforced by policy measures such as allowing foreign residents “to open accounts and transact using foreigner resident cards at six major domestic banks from Mar 2025.”
Credit and charge cards dominate spending in South Korea, “accounting for 79.9% of total card payment value in 2025e, substantially outpacing debit cards.”
Credit card usage is driven by strong consumer appetite “for perks such as cashback, discounts, and rewards.”
Chinta adds:
“Although contactless adoption remains relatively modest in South Korea, it is steadily improving and driving overall card penetration. Banks and schemes are actively promoting tap‑and‑go cards, and the growing number of contactless‑enabled POS terminals—supported by initiatives such as Payhere’s dedicated POS for restaurants launched in January 2024 and hardware upgrades following the March 2023 arrival of Apple Pay—will help lift card transaction volumes, particularly for low-value payments.”
Regulatory and structural shifts are also shaping card usage patterns.
POS terminals growth is directly supporting card acceptance growth—especially among small businesses “benefiting from government voucher programs.”
A KRW13.8 trillion ($10.3 billion) voucher package launched in July 2025, deliverable “via credit, debit, or prepaid cards and restricted to small merchants with annual sales of KRW3 billion ($2.2 million) or less, is designed to spur consumption while reinforcing card usage at SMEs.”
Also, at the macro level, Bank of Korea’s decision to lower its “base rate from 3.5% in Jan 2023 to 2.5% in May 2025 is expected to reduce credit card interest rates, easing borrowers’ financing costs and in turn supporting consumer purchases and overall card spending.”
Chinta continues:
“South Korea’s payment card market is poised for sustained growth over the next five years, supported by increasing consumer awareness of digital payments and advancements in payment infrastructure. The rise in e-commerce and contactless payments will also contribute to this growth.”
They concluded:
“While macroeconomic uncertainty and the popularity of mobile wallets may cap upside, sustained policy support for financial inclusion, intensifying competition from digital-only banks, rising contactless adoption, and generous reward propositions on both debit and credit cards will continue to drive the expansion of card payments in the country.”