South Korea’s Hyundai Card Co. received a “warning” from financial authorities after significantly expanding its card loans in 2024.

Card loans are often used as an emergency credit source for low-income individuals.

Sources from the credit card industry said on Sunday that the Financial Supervisory Service (FSS) recently warned Hyundai Card to closely monitor the soundness of its card loan portfolio and strengthen its credit limit management after conducting a regular inspection.

The FSS issued eight management advisories and 15 improvement recommendations.

The regulator specifically noted that Hyundai Card’s card loan balance grew at a much faster pace than that of other credit card companies, according to sources. Hyundai Card’s card loan balance was 5.64 trillion won ($4.12 billion) as of the end of September 2024, up 18 percent from 4.78 trillion won at the end of 2023 and more than double the industry average growth rate according to the Credit Finance Association.

“We plan to take corrective measures for the issues identified,” a Hyundai Card official said. “We will reinforce our management focus on soundness via proactive risk management.”

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