South Korean credit card and insurance companies are rapidly expanding their overseas business into China and Southeast Asia.
Shinhan Card is currently doing business in Vietnam, Indonesia and Myanmar. In the first half of this year, its overseas net profit was 11.33 billion won, up 400 percent from a year ago. KB Kookmin Card has branches in Southeast Asia in Cambodia, Indonesia and Thailand, and their net profit has increased eightfold to more than 12 billion won during this period.
Woori Card founded TUTU Finance in Myanmar in 2016 and Woori Finance Indonesia earlier this month. BC Card acquired 67% of Indonesian IT developer Cranium on August 12. The developer’s clients include several state-owned companies such as Telkom and Bank Mandiri.
Samsung Fire & Marine Insurance aims to increase its overseas general insurance sales ratio to at least 50% by 2027 from the current level of 30%. Its overseas branches are currently located in seven countries, including China, Indonesia, Vietnam and Singapore.
Hanwha Life Insurance entered the Vietnamese market in April 2009 and later expanded its overseas business to China and Indonesia. Mirae Asset Life Insurance currently owns half of Prevoir Life Insurance in Vietnam and is strengthening its presence in the local variable insurance market.
The concentration of these companies in Asian markets is explained by the fact that their credit card and insurance sectors have yet to be further developed in the fast-growing and high-population region. For example, Indonesia’s population and annual economic growth rate are about 280 million and 5%, and Vietnam’s are about 100 million and 8%, respectively.
“Credit card use is still very rare in China and Southeast Asia and this is due to the lack of personal credit reporting systems for setting credit limits,” a source said. industry, adding, “That’s why big data from South Korean credit card companies credit scoring based on credit rating has a chance there.”