The financial watchdog said Wednesday it will beef up its surveillance of credit card firms to reduce the hefty number of dormant plastics in the market, which has resulted from heated competition in the industry.

The move came as the number of dormant cards in South Korea totaled 23.4 million at end-April, remaining almost flat from 23.5 million tallied at end-January, according to the Financial Supervisory Service.

Dormant credit cards refer to accounts without transaction records during a 12-month period.

The number translates into almost the entire economically active population holding one dormant plastic card. South Korea’s economically active population currently hovers around 25 million.

In March, the FSS made it mandatory for South Korean credit card firms to automatically rescind accounts after they are dormant for three months.

Market watchers said the number remained flat as credit card firms induced holders to maintain their accounts while notifying scheduled closures of dormant cards to sustain market share amid the heightened competition in the industry. (Yonhap News)