Five major Korean card companies—Shinhan Card, KB Kookmin Card, Hyundai Card, Hana Card, and Woori Card—collectively posted KRW 877.4 billion in net profit during the first half, marking a 12.4% increase from the same period last year, according to financial sector data released on the 27th. The profit growth was driven by cost efficiency improvements and reduced loan-loss provisions as companies restructured operations toward profitability-focused business models. In the second quarter alone, the five issuers recorded combined net profit of KRW 488.3 billion, up 18.9% year-over-year, with all five achieving double-digit growth rates.
Five Card Issuers Achieve Double-Digit Q2 Net Profit Growth
Shinhan Card led the group with a 24.44% year-over-year increase in second-quarter net profit to KRW 138 billion, the highest growth rate among the five companies. The issuer's Q2 loan-loss provisions fell 7.6% year-over-year to KRW 234.7 billion, while commission and other operating expenses decreased 24.1% to KRW 671.9 billion. Shinhan Card's first-half net profit rose 2.76% year-over-year despite a one-time voluntary retirement cost impact in the first quarter.
Hana Card recorded KRW 68.4 billion in second-quarter net profit, up 22.8% from the same period last year, exceeding a 20% growth rate. The company expanded its premium customer base through corporate cards, Travelog products, and patriotic cards developed in collaboration with group affiliates, generating approximately KRW 16.7 billion in additional operating profit during the second quarter.
KB Kookmin Card, Hyundai Card, and Woori Card each posted second-quarter net profit growth rates in the 15% range. Kookmin Card's Q2 net profit reached KRW 111.4 billion, up 15.2% year-over-year, while its first-half net profit recovered to the KRW 200 billion level at KRW 218.9 billion, a 20.74% increase. The growth was attributed to expanded non-interest income from higher card usage—total card spending rose from KRW 88.8 trillion to KRW 93.5 trillion in the first half—and reduced credit loss provisions, which fell from KRW 418.8 billion to KRW 393.3 billion.
Woori Card's second-quarter net profit increased 15.74% year-over-year to KRW 50 billion, with first-half profit up 22.08% to KRW 94 billion. The company's number of active proprietary merchant locations exceeded 2 million as of the end of the second quarter, while first-half loan-loss costs declined approximately KRW 10 billion to KRW 247 billion from KRW 257 billion.
Hyundai Card posted first-half net profit of KRW 185.2 billion, an 11.9% year-over-year increase, despite a rise in loan-loss provisions. The company's first-half provisions increased KRW 34.6 billion to KRW 330 billion from KRW 295.4 billion, with most of the increase occurring in the second quarter (up KRW 31.9 billion year-over-year). The profit growth was supported by expanded operating income and increased Apple Pay transaction volumes.
Delinquency Rates Decline Across Major Card Companies in Q2
Most of the five card issuers reported improved asset quality indicators in the second quarter. Hana Card, which had the highest one-month-plus delinquency rate at 1.81% in the first quarter, saw the rate decline 0.08 percentage points to 1.73% in Q2. Shinhan Card's delinquency rate fell 0.09 percentage points to 1.21%, while Hyundai Card's rate dropped 0.11 percentage points to 0.74%.
KB Kookmin Card recorded the largest decline, with its one-month-plus delinquency rate falling 0.14 percentage points from 1.21% in the first quarter to 1.07% in the second quarter. Woori Card was the only issuer to see a slight increase, with its delinquency rate rising 0.01 percentage points from 1.8% to 1.81%.
A card company official stated that the delinquency rate improvements reflect proactive risk management, strengthened debt collection, and expanded financial consumer protection measures amid ongoing economic uncertainty. Another official noted that the performance improvements came from cost structure optimization, including diversified funding through Kimchi bonds and overseas asset-backed securities issuance to reduce interest expenses.
FAQ
What profit did Korean card companies report in the first half?
Five major Korean card issuers—Shinhan Card, KB Kookmin Card, Hyundai Card, Hana Card, and Woori Card—collectively posted KRW 877.4 billion in first-half net profit, a 12.4% increase from the same period last year.
Which card company had the highest Q2 profit growth rate?
Shinhan Card recorded the highest second-quarter profit growth rate at 24.44% year-over-year, with net profit reaching KRW 138 billion, driven by reduced loan-loss provisions and lower operating expenses.
How did delinquency rates change for Korean card companies in Q2?
Most major card issuers saw delinquency rates decline in the second quarter, with KB Kookmin Card posting the largest drop of 0.14 percentage points to 1.07%, while Woori Card was the only issuer with a slight increase of 0.01 percentage points to 1.81%.
