South Korea’s card payments market is forecast to grow at a compound annual growth rate ( CAGR ) of 3.7% over five years to reach 1,510.2 trillion won ( US$1.1 trillion ) by 2029, supported by high card penetration, strong payment infrastructure, and continued government backing for cashless payments, a new report reveals.

Total card payment value in the country expanded by 4.5% in 2024 to 1,255.2 trillion won, driven by rising card usage and growing preference for electronic payments. The value is estimated to increase by a slower 3.8% in 2025 to 1,303.4 trillion won, GlobalData says in its latest Payment Card Analytics.

“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 ( point of sale ) infrastructure,” says Poornima Chinta, senior banking and payments analyst at GlobalData.

“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.

Despite this, they account for just 20.1% of total card payment value in 2025. However, debit card usage is expected to grow further, reinforced by policy measures such as allowing foreign residents to open accounts and transact using foreigner resident cards at six major domestic banks from March 2025, the report says.

Credit and charge cards dominate spending in South Korea, accounting for 79.9% of total card payment value, substantially outpacing debit cards. Credit card usage is driven by strong consumer appetite for perks such as cashback, discounts, and rewards.

“Although contactless adoption remains relatively modest in South Korea, it is steadily improving and driving overall card penetration,” Chinta says. “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 programmes. A 13.8 trillion won voucher package launched in July 2025, deliverable via credit, debit, or prepaid cards and restricted to small merchants with annual sales of 3 billion won or less, is designed to spur consumption while reinforcing card usage at small and medium enterprises.

Also, at the macro level, Bank of Korea’s decision to lower its base rate from 3.5% in January 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.

“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,” Chinta concludes.