Published : 2013-08-22 19:49
Updated : 2013-08-22 19:49
South Korean credit card companies saw the default rates of their card holders increase in the first half amid the protracted economic slump, data showed Thursday.
Samsung Card Co., one of South Korea’s largest credit card firms, saw its delinquency rate reach 1.82 percent as of end-June this year, up 0.14 percentage point from end-December 2012, industry data showed.
The default rate measures overdue credit card bills against the total charge. A higher number indicates more people are failing to pay their dues.
KB Kookmin Card Co. and Hana SK Card Co. also saw their default rates advance 0.85 percentage point and 0.4 percentage point, respectively, to reach 2.11 percent and 2.92 percent over the cited period.
Market watchers, however, said the numbers are not at an alarming level, as credit card firms have been improving their risk-management systems since 2003, when default rates surged to reach nearly 30 percent.
In 2003, the South Korean economy was hit by the burst of the credit card bubble after card firms excessively issued plastic money even to non-qualified customers.
The combined net profit of seven stand-alone credit card firms, meanwhile, reached 980 billion won ($871.1 million) in the first half, down 35 percent from the 1.4 trillion won posted in the previous year, separate data showed. (Yonhap News)