Credit Card Companies Concentrating On Auto Financing

The Credit Finance Association revealed on August 17 that an overall charge card payment for brand-new car purchase in South Korea increased by 23.5% from a year ago to 13.87 trillion won (U$ 12.06 billion) in the first half of this year. The quantity, which stood at 19.7 trillion won (US$ 17.13 billion) in 2013, leapt to 22.25 trillion won (US$ 19.34 billion) in 2014 and to 23.92 trillion won (US$ 20.80 billion) last year.

In the past, South Korean charge card companies used to provide installment funding for vehicle buyers in partnership with installment financing business. In 2014, nevertheless, Hyundai Motor Business revealed its opposition to such installation financing, asserting that charge card companies took a commission of as high as 1.9% without taking a necessary function, and then this type of funding vanished from the South Korean vehicle market.

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