The soaring competition in credit card companies in Korea has alerted the government. The current scenario of the credit cards in Korea shows a steep rivalry as the companies are signing up new clients aggressively. This new marketing method is predicted to be potentially harmful for the economy by Korean government. The government officials have reacted to this sharp competition and desperate selling strategy and have advices credit card companies to slow down. The credit card crisis of 2003 is expected to revive if the companies don’t cease their selling.

Recently, Kim Jong-chang, chairman of Financial Supervisory Service, have highlighted the consequences of massive competition in credit card industry in a meeting. The meeting also included CEOs of eminent credit card companies. He has curtly spoken about the aggressive selling of credit card on streets.  He has stated this common practice of the companies as a sure mean to face the credit crisis again.

Tracing back the time, in 2003, the crisis of credit card was initiated due to the forceful selling strategy of credit card. Companies adopted schemes like granting cards to people with low credit score, without any regard to the credit worthiness of individuals. This e eventually led to the destructive credit crisis.

As sure consequence of the wrong marketing procedure of credit card companies, Korea is witnessing successive increase in its credit card loans each year. The present situation can lead to a precarious condition unless the competition is curbed through government intervention with immediate effect.