Losing Chance
Even though the Chinese credit card market worth 1.6 billion won (US$1.45 million) has opened, Korean credit card companies are not even conducting a preliminary feasibility study on penetration into the Chinese market. Therefore, many in the industry point out that local companies should respond more actively.
According to sources in the financial sector on Feb. 15, a few months have passed since China opened its credit card market. However, there is not a single credit card company in the nation that is studying the Chinese market by recruiting experts or preparing to enter the market. The State Council of the People's Republic of China opened its credit card market in October of last year in accordance with a ruling by the World Trade Organization against the Chinese government regarding the government's policy that blocks the entry of foreign credit card companies into the domestic market.
BC Card, which targets the Korean market in partnership with China UnionPay, has personnel only involved in the management of UnionPay-related businesses. The company doesn't have any experts related to the penetration into the Chinese market. Currently, the overseas businesses of the local credit card industry are limited to some countries such as Kazakhstan by Shinhan Card and Indonesia by BC Card.
As a result, industry analysts are saying that local credit card companies are not fully preparing for the entry into the Chinese market, which has tremendous growth potential in the long term. Those firms are not trying to penetrate the market, citing that it is difficult to make personal connections in the Chinese government. Experts are calling the industry's approach short-sighted.
Meanwhile, high-ranking officials in the Chinese government are reportedly interested in Korean credit card companies' advanced marketing methods and credit assessment systems. In fact, the Chinese Academy of Social Sciences, the nation's top think tank, has conducted tests of Korea's credit assessment systems for several years.