According to a report by GlobalData, the South Korean payment card market is projected to grow by 3.8% to $1 trillion (KRW1.4 quadrillion) in 2025. This growth is largely due to the increasing popularity of digital payments.
A key trend highlighted in the report is the shift away from cash. From 2020 to 2024, card payments grew at a compound annual growth rate (CAGR) of 7.8%, reaching $972.4 billion (KRW1.3 quadrillion) in 2024. During the same period, ATM cash withdrawals only saw a modest 0.9% growth, reflecting a decline in the use of cards for cash.
As of July 2025, each person in South Korea holds an average of more than six payment cards, and the frequency of card use has increased from 86.2 times per card in 2021 to an estimated 97.8 times per card in 2025. POS (point-of-sale) transactions are expected to make up 96.1% of all card payments by 2025, leaving a small portion for cash withdrawals.
The number of card transactions is also on the rise, projected to increase from 24.2 billion in 2021 to 30.7 billion in 2025 and further to 35.9 billion by 2029. Recent initiatives, such as the new all-in-one POS terminal launched for small businesses and the expansion of contactless payments on Jeju Island’s bus system, are contributing to this trend. Looking ahead, the payment card market is forecasted to grow at a CAGR of 3.6% between 2025 and 2029, reaching KRW1.6 quadrillion ($1.2 trillion) by the end of the period.
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