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Card companies report a 33.9 percent increase in revenue in 2021 due to increased fee income.

Seoul, March 28 (Yonhap News Agency)-Industry data showed on Monday that Korean card companies saw a surge in total revenue in 2021 as commission revenues increased due to a recovery in consumption from a pandemic.

According to preliminary data from the Financial Supervisory Service (FSS) of the Republic of Korea, the combined net revenue of eight major card companies was 2.71 trillion won (US $ 2.21 billion), an increase of 33.9% from the previous year.

This increase is due to an increase in commission income, which increased by 613.8 billion won from last year. Card loan revenue also increased by 187.8 billion won over the same period, the data said.

Credit and debit card spending increased 9.5% year-on-year to 960.6 trillion won in 2021. In particular, credit card spending increased 10.4% to 779 trillion won.

The card loan issued in 2021 was 107.2 trillion won, an increase of 0.1% from the previous year, although the growth was slower than 1.8% from the previous year in 2020.

Last year’s card loan delinquency rate was 1.09%, down 0.2 points from the previous year.

As of the end of 2021, the number of credit cards issued was 117.7 million, an increase of 3.5% from the previous year. Debit card issuance was down 3.6% to $ 106 million.

According to the FSS, local card companies will have higher borrowing costs as geopolitical risks increase and debt is more likely to worsen as major economies tighten monetary tightening policies during the pandemic era. It is about.

Regulators said, “By increasing the allowance for doubtful accounts, we will induce them to strengthen their shock absorption capacity.”

http://yna.kr/AEN20220328004900320&section=news&input=rss Card companies report a 33.9 percent increase in revenue in 2021 due to increased fee income.

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