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By Anna J. Park

Major local card companies are seeking new growth momentum as they vow to weather looming economic threats. Both incumbent and newly appointed CEOs of these companies urged their employees to differentiate themselves from other companies' services to seek growth.

Shinhan Card CEO Moon Dong-kwon speaks during an appointment ceremony held at the company's headquarters in Seoul, Tuesday. Courtesy of Shinhan Card

Shinhan Card's new CEO Moon Dong-kwon, who took office on Tuesday, said the company aims to achieve customer-centered innovation as its first priority amid unfavorable market conditions of high interest rates, high inflation and high foreign exchange rates.

"Based on synergy created through Shinhan's own networks, Shinhan Card needs to evolve into a unique platform company that provides greater value to customers and society," Moon said.

KB Kookmin Card CEO Lee Chang-kwon delivers his New Year message during a ceremony held at the firm's headquarters in Seoul, Monday.

The urgency expressed by the CEO is shared by other major card company chiefs.

KB Kookmin Card CEO Lee Chang-kwon, who's been leading the firm since early last year, called for a transformation of the company structure into a flexible and speedy one.

"This year's business environment could be an unprecedented crisis," Lee said in his New Year message. "The firm needs to stick to its solid growth strategy based on profitability and capital soundness, strengthening customer satisfaction and advancing sales and marketing."

Samsung Card CEO Kim Dae-hwan / Courtesy of Samsung Card

Samsung Card CEO Kim Dae-hwan also stressed the firm should swiftly adapt to data-driven digitalization. He urged the company to achieve more efficient management, while strengthening data and platform services.

It is expected that the generally unfavorable market conditions for the card industry will continue throughout this year, with shrinking liquidity amid rising interest rates. Local card companies already suffered a decline in their profitability with slashed fees collected from affiliated shops. In a move to secure more reserves, card companies are also reducing the sizes of various loan products, such as card loans.

The credit card sector is also experiencing intensifying competition with big tech companies like Naver, Kakao and Toss. As an increasing number of people and shops rely on smart payments powered by these big tech firms, the card firms of Shinhan, KB Kookmin and Hana teamed up to provide a common payment service for customers. However, various payment services available through big tech firms as well as the introduction of Apple Pay, expected in the Korean market during the first half of this year, are adding burdens on the future profitability of card companies.