Hyundai Card, South Korea’s leading credit card issuer, is bolstering its overseas expansion on the back of stronger credit ratings and growing data-driven capabilities.

The company recently secured an upgrade from Japan Credit Rating Agency, building on its milestone achievement in November 2023 when it became the first Korean card firm to obtain a JCR rating. In December, JCR raised Hyundai Card’s rating one notch to AA- Stable, aligning it with its parent company, Hyundai Motor Group.

In February, Hyundai Card also retained its BBB+ Stable rating from Fitch, confirming last year’s upgrade from BBB Positive. S&P likewise raised its rating on the firm to BBB+ Stable last year, while Moody’s affirmed its rating of Baa1 and stable outlook.

The strong external ratings stand out as Korea’s economy grapples with persistent inflation, slowing growth and external risks. Hyundai Card’s solid financial footing and competitive business model have helped it weather the broader turbulence.

Hyundai Card topped Korea’s card industry in credit sales last year, with transaction volume climbing 11 percent to 166.27 trillion won ($113 billion), according to the Credit Finance Association of Korea.

A key growth engine was its overseas transactions, which surged more than 30 percent to 3.5 trillion won. That pushed its share of overseas spending among local card issuers to 25 percent, further cementing its leadership in the segment.

Net income rose 19 percent to 316.4 billion won in 2024, while its user base expanded by 500,000 to a record 12.56 million. The company has also maintained the industry’s lowest delinquency rate for the past four years.

Fueling Hyundai Card’s growth is its distinctive focus on personalized services, powered by data science. Under CEO and Vice Chairman Chung Tae-young digital initiative, the company has invested about 1 trillion won over the past decade to build its own artificial intelligence and data analytics capabilities.

That bet resulted in Universe, Hyundai Card’s proprietary AI software, which enables hyperpersonalized data analysis and marketing, with applications across industries. Leveraging Universe, the company has come to dominate Korea’s private label credit card market, holding a 78 percent share through exclusive partnerships with major brands.

More recently, the firm has begun monetizing its technology abroad. In October 2024, it signed a landmark deal to export Universe to Japan’s Sumitomo Mitsui Card Co., marking the first software export by a Korean financial company.

The company aims to evolve into a broader financial technology player, seeking new global growth opportunities through data-driven collaborations across international markets.

Hyundai Card also benefits from the backing of Hyundai Motor Group. Global credit rating agencies have highlighted the card issuer’s strategic role within the conglomerate, with Hyundai Card processing about 40 percent of the group’s total sales.

“Backed by strong ratings from global credit agencies, we expect to secure stable funding in overseas markets, including through foreign currency bond issuances, while lowering financing costs,” a company official said. “These favorable ratings will serve as a foundation for our global expansion.”

By Choi Ji-won (jwc@heraldcorp.com)