Amid the global economic crisis, the management environment of credit card companies has worsened, while Hyundai Card recorded the industry's only arrears rate in the 0% range.
According to Hyundai Card on the 27th, looking at the arrears rate of major credit card companies in the first quarter of this year (excluding refinancing), Hyundai Card recorded the lowest figure among domestic credit card companies at 0.90%. The average arrears rate of major credit card companies during the same period is 1.59%. The arrears rate is a key indicator of the asset soundness of credit card companies.
Hyundai Card noted that it manages financial assets based on a stable soundness foundation established through continuous risk management. In particular, it is strengthening soundness by selling financial products primarily to genuine users and high-quality customers. Additionally, it is managing limits and debts to prevent an increase in the arrears rate and is maintaining stable management to ensure that the scale of financial transactions does not grow excessively.
Hyundai Card also has a unique risk management system. It explained that it is operating a crisis response system, including a "Contingency Framework" and "Sync Frame," which enable quick decision-making and immediate action, allowing for proactive responses to external factors that could affect the company's soundness.
Standard & Poor's (S&P) assessed that Hyundai Card has maintained robust asset soundness through proactive risk management, noting its arrears rate is in the 0% range, and upgraded its rating to BBB+ Stable. Japan's leading credit rating agency Japan Credit Rating Agency (JCR) also upgraded Hyundai Card's credit rating to AA- Stable in December of last year.
JCR evaluated that "Hyundai Card has secured solid asset soundness represented by low arrears and non-performing loan (NPL) ratios through conservative risk management, and it possesses high capital adequacy and sufficient liquidity." According to the Korea Credit Finance Association, Hyundai Card's balance of card loans in April decreased by about 12.9 billion won compared to March. This contrasts with the total card loan balance of all domestic card companies, which increased by 128.5 billion won.
A Hyundai Card official said, "We are managing arrears at the lowest level in the industry through proactive risk management, focusing on soundness," and added, "Due to recent signs of rising arrears rates amid economic downturns, we have implemented additional measures to strengthen risk management since April, managing limits for high-risk borrowers and engaging more intensely in maintaining soundness."