South Korea’s payment card market is expected to surpass KRW 1,510.2 trillion ($1.1 trillion) in transaction value by 2029, growing at a 3.7% compound annual rate from 2025–2029, according to data and analytics firm GlobalData. The momentum reflects strong digital payment adoption, high banking penetration, and government support for the transition away from cash.
GlobalData reports that the value of card payments in 2024 grew by 4.5% to reach KRW 1,255.2 trillion ($933.9 billion), driven by frequent card usage and shifting consumer preference toward electronic payments. Growth is expected to moderate slightly in 2025, rising 3.8% to KRW 1,303.4 trillion ($969.8 billion).
“South Korea’s card payments market is one of the most mature globally,” said Poornima Chinta, Senior Banking and Payments Analyst at GlobalData. “Widespread financial access, extensive point-of-sale networks, and strong consumer incentives have embedded cashless behavior into daily life. On average, consumers hold more than six cards and use them nearly 100 times each year.”
Debit cards remain the most common product by volume, with penetration projected to reach 343.1 cards per 100 residents in 2025. However, they will represent just 20.1% of card transaction value, as reward-rich credit and charge cards continue to dominate spending at 79.9%.
Debit use is expected to rise following new policy measures—such as allowing foreign residents to open accounts and transact with resident cards at six major domestic banks beginning March 2025.
Contactless usage—historically slower to take root in South Korea—is beginning to expand, supported by growing POS compatibility. Recent market initiatives include Payhere’s restaurant-focused POS terminals launched in January 2024 and ongoing hardware upgrades after Apple Pay’s arrival in March 2023. These improvements are expected to lift transaction volumes, especially for small, everyday purchases.
Government stimulus and monetary policy are further shaping payment trends. A KRW 13.8 trillion ($10.3 billion) voucher program introduced in July 2025, redeemable only at small merchants with annual sales under KRW 3 billion ($2.2 million), encourages spending while strengthening card acceptance in the SME sector. Meanwhile, the **Bank of Korea’s rate cuts—from 3.5% in early 2023 to 2.5% in May 2025—**are easing borrowing costs and providing a tailwind for credit card spending.
“Digital payment awareness, improved infrastructure, and growing e-commerce activity will continue to propel South Korea’s card market,” Chinta added. “Although mobile wallets and economic uncertainty may temper growth, expanding contactless adoption, digital-only bank competition, and generous reward schemes will keep card usage on a long-term upward trajectory.”
