Hyundai, Lotte, BC cards’ Q3 profits soar on specialized cards

(GettyImagesBank)

Lotte Card Co., Hyundai Card Co., and BC Card Co. managed to increase their net profits in the third quarter thanks to successful specialized card strategies, according to industry sources on Sunday.

The net profits come despite sharp declines in card loans and other unfavorable conditions pushing many card issuers into losses in the third quarter.

Lotte Card posted a net profit of 66.9 billion won ($45.58 million) in the July-September period, up 69.5 percent from the same period a year earlier.

Hyundai Card’s net profit rose 17.3 percent to 89.5 billion won during the same period, while BC Card posted 40.6 billion won, an increase of 38.5 percent.

The remaining five card companies saw declines in their earnings.

The industry’s overall weakness was largely due to the government’s tighter lending regulations and the continued contraction of card loans and cash-advance services, which dragged down loan-related transaction volumes.

Industry observers noted that the rise in net profit at Lotte, Hyundai, and BC appears to have come largely from their focus on specialized card products.

Lotte Card has been expanding its customer base through its DIGILOCA strategy.

The DIGILOCA product series has continued to gain strong customer traction, while the company secured high-quality and loyal members by offering long-term, interest-free installment benefits through its DIGILOCA -linked apps Thing Shop and Edge.

Thing Shop is an open-type online shopping mall, and Edge is a premium shopping zone within Thing Shop where users can regularly access long-term, interest-free installment offers.

Hyundai Card, in the meantime, has been restructuring its product portfolio since last year under a new brand slogan, Architect of Change (AoC).

This involves establishing a more intuitive and unified product system by simplifying previously complex card services and benefits.

Hyundai Card also launched lifestyle-tailored lineups such as Hyundai Card Boutique and the Alphabet Card series, significantly strengthening product competitiveness.

Boutique is positioned as a new category between premium cards with an annual fee of 150,000 won and mass-market cards with an annual fee under 30,000 won, designed to offer a middle-ground alternative in a market polarized between premium and general-purpose products.

BC Card has been expanding its portfolio since 2021 under its own proprietary brand, the BC Baro Card, which it issues directly.

The company has also launched a range of co-branded cards, including the K-Bank SIMPLE Card with Shinsegae Department Store, and the KT Super Card with KT mobile carrier.