Korea’s Financial
Supervisory Service (FSS) is to investigate the country’s five
independent credit card issuers marketing activity.
The FSS said on 11
January that it will be looking into alleged excessive marketing
spend by Shinhan, Hyundai, Hana SK, Samsung and Lotte.
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According to the FSS,
marketing spend at the card issuers as a proportion of total
profits rose to almost 25% in the third quarter of 2010.
Competition in the
Korean card sector is expected to increase this year with Korean
Development Bank and the Korea Post set to enter the card
industry.
A number of local
lenders, including Korea Exchange Bank, Woori and the local unit of
Citi, are also reportedly considering spinning off their card
units.
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By GlobalData
