Korea’s overseas card spending up 43% this year on more international travel

South Korea’s overseas card spending rose 43 percent in the first 11 months of this year from a year ago as demand for international travel increased after the end of the Covid-19 pandemic, data showed Thursday.

According to data from the Credit Finance Association, overseas credit, check, and debit spending stood at 15.39 trillion won ($11.9 billion) this year as of the end of November, up 43 percent from 10.7 trillion won in the same period a year ago.

The surge comes as more people went on overseas trips after Covid-19 restrictions were lifted.

According to the Tourism Knowledge & Information System, the number of overseas travelers who left the country in November increased by 98 percent from the same month a year ago, reaching 2.06 million.

Up until November this year, the cumulative number of overseas travelers was 20.3 million, which is about 77 percent of the level during the same period in 2019 before the pandemic.

With the rapid growth of the cross-border payment market, card companies are actively launching card products related to overseas travel and running promotions to encourage payments.

“As the number of overseas travelers increases, the overseas payment amount also goes up, and from the perspective of card companies, it is inevitable to actively launch card products related to overseas travel,” said an industry official. “Card sales promotions such as by exempting annual fees may not generate significant profits immediately, but it is an effective strategy.”

Card companies are releasing more diverse types of overseas travel-related card products than before.

Previously, there were many cards in the form of private-label credit cards (PLCC) in cooperation with airlines or hotel chains, but now there are cards that specialize in overseas payments.

For example, prepaid foreign currency recharge cards introduced by Hana Card and Woori Card are popular among overseas travelers.

The cards allow users to exchange foreign currency on their respective applications and immediately use the amount exchanged on the linked card without going through banks or exchange offices.

There are also cards that exempt or refund fees incurred during overseas payments or provide discounts on the amount of usage. BC Card recently launched the Naver Pay MoneyCard, which accumulates 3 percent of the payment amount at overseas merchants and refunds the fee.

KB Kookmin Card’s check card for overseas travelers offers up to 300,000 won in cash back on automated teller machine (ATM) withdrawal fees.

There are also cards specializing in offering discounts or rewards for essential travel expenses such as airfare, accommodation, and duty-free shopping.