K-Culture Unfolded

Hey folks! Today, I want to chat about a super trendy financial service that's been making waves globally—BNPL, or Buy Now, Pay Later.  You might have heard the buzz around it, especially if you're a shopaholic like me. BNPL is this nifty option that lets you buy stuff now and pay for it later, without the hassle of going through credit checks.  Sounds like a dream, right? But here's the kicker: while it’s all the rage abroad, Korea’s MZ generation is just not that into it. Let’s dive into why that is! What’s the Deal with BNPL? First things first, BNPL stands for Buy Now, Pay Later. It’s pretty much what it sounds like.  You get to buy something today and pay for it down the road. It’s kinda like a digital layaway plan, minus the old-school vibes. What makes BNPL cool is that it skips the tricky credit checks that come with getting a credit card.  If you're 18 or older, you can start using BNPL right away, even if you don’t have a steady income or a bank account. No...

Top selling Hyundai PLCCs (Costco, Korean Air, Starbucks) Amidst the issuance of over 7 million Private Label Credit Cards (PLCCs) , Hyundai Card has demonstrated its market dominance with an impressive near 80% share. Hyundai Card has announced plans to not only attract more customers through its PLCCs but also to enhance its competitive edge by collaborating closely with partner companies. According to data released on the 26th 2023 by Rep. Yoo Eui-dong from the National Assembly, the number of PLCCs issued had reached 7,338,677. Introduced in South Korea in 2015, PLCCs are specialized cards that offer exclusive benefits and services through partnerships with specific companies. Unlike co-branded cards, which offer perks from various partners , PLCCs provide targeted rewards and discounts from dedicated collaborators. For card issuers, PLCCs are beneficial as they attract a substantial influx of customers, particularly those loyal to the partner brands, which can significantly enhanc...

1. The South Korean Credit Card Crisis of the Early 21st Century In 2002, nearly five years after South Korea had emerged from the 1997 foreign exchange crisis, the nation faced its first economic challenge of the 21st century, plunging millions into credit delinquency . The crisis, often referred to as the "2002 Card Crisis" or "LG Card Crisis" due to the collapse of then-market leader LG Card, wreaked havoc on Korea's economy and society through 2006. 2. Background to the Crisis The administration under President Kim Dae-jung, which began in 1998, sought to rejuvenate the economy post the foreign exchange crisis and simultaneously clamp down on prevalent tax evasion . The government promoted credit card use to boost consumption and reduce tax evasion through cash transactions, significantly relaxing regulations around credit cards.  From enabling higher cash withdrawals on credit cards to introducing income tax deductions and receipt lottery systems, credit c...

  Credit Card Loan Delinquency Rates Hit 3.4%, Highest in a Decade In Seoul, Kim, a 33-year-old cafe owner, recently received a text message from a credit card company notifying him of a loan delinquency. Last year, he borrowed 10 million won at an interest rate of 15%, but has been unable to make timely payments due to a decrease in cafe sales. Several large offices near the cafe relocated or closed, significantly reducing customer traffic. Kim mentioned, "I'm considering shutting down the business." As high interest rates and inflation persist, the financial strain on ordinary households is intensifying. Credit card loans and emergency loans from internet banks, often sought by those in urgent need of money or those with medium to low credit ratings, are seeing a rapid increase in delinquencies. Credit Card Loan Delinquency at Banks Hits Decade High According to the Bank of Korea, as of the end of February, the delinquency rate for credit card loans (excluding banks wit...