The number of financial cards and payments in circulation witnessed consistent growth in 2025. Debit card use has come under threat from BNPL services, with young adults choosing this option to fuel spending behaviour as disposable income is restricted to essentials.

Legislative restrictions are making it harder for consumers and small businesses to obtain loans in South Korea, leading to a stronger reliance on overdrafts and credit card cash advances. Players are seeking ways to circumvent new regulations, to provide solutions for cash-strapped consumers who continue to grapple with challenging economic conditions.

Debit cards in South Korea are facing growing competition from BNPL financial services, which are proving attractive financial cards among young adults. Travel debit cards are adding some value to category performance.

In a difficult economic climate shaped by high interest rates and falling merchant rates, credit card companies are undertaking cost-cutting measures as a way to protect revenues and profit margins. Cards are being discontinued and players are seeking new revenues streams in the commercial sector.

Pre-paid cards witnessed consistent growth in 2025, in line with wider usage of transport cards, including The Climate Companion Card and T-Money. Whilst the bulk of pre-paid development focuses on transportation, card companies are targeting teenage audiences by offering pre-paid financial cards.

Store cards in South Korea witnessed sluggish growth in 2025 amid the emergence of private label credit cards. Strategic partnerships and limited edition store cards are being used to garner consumer interest.

The microwaves market in South Korea experienced a mixed performance in 2025, with a decline in retail volume but at a slower rate compared to previous years, at approximately 2%. Despite economic uncertainty, the market saw value growth driven by a shift towards higher-priced, multi-functional products. The trend towards multi-functionality and compact design was significant, with local consumers opting for all-in-one appliances that combine microwave functions with other cooking features. Free

The refrigeration appliances market in South Korea saw negative growth in 2025, driven by a challenging economic environment and a saturated market, with a decline in retail volume sales of 6%. Despite this, the smart and AI-powered trend continued to shape the category, with manufacturers like Samsung and LG driving premiumisation through innovative products. The market is expected to remain stagnant, with a forecast CAGR of -2% from 2024 to 2029. To succeed, brands should focus on innovative f

The personal care appliances market in South Korea is characterised by a divergence in performance between traditional categories and the beauty device segment, with the latter driving growth through technological advancements and changing consumer behaviour. Consumers are willing to invest in premium products, particularly younger demographics who view these devices as a valuable form of self-investment. The market is expected to continue growing, driven by demand for innovative, high-performan

The large cooking appliances market in South Korea experienced negative growth in 2025, primarily due to a general economic slowdown and a decline in consumer sentiment driven by high interest rates and inflation. Despite this, the category underwent a qualitative shift towards premium products, driven by technological advancements and changing consumer behaviour. Local consumers were willing to invest in high-end appliances with advanced features such as AI, built-in designs, and multi-function

The home laundry appliances market in South Korea is characterised by a shift towards premiumisation, driven by technological advancements and government policies. In 2025, the total retail volume was 3 million units, representing a 4% decline. Despite this, the market is expected to grow over the next five years, driven by the integration of AI technology and changing consumer preferences. Samsung and LG dominate the category with a combined share of 80%, while emerging brands like Roborock are

The vacuum cleaners market in South Korea exhibited divergent trends in 2025, with a decline in retail volume but a less pronounced decline in retail RSP, indicating a premiumisation trend. Consumers are seeking high-tech appliances with advanced features, driving growth in robotic vacuum cleaners. The market is expected to continue its premiumisation trend, with a forecast CAGR of 2% in retail RSP to KRW1,606 billion by 2030. The high penetration rate of vacuum cleaners among households suggest

The dishwashers market in South Korea experienced a decline in sales growth in 2025, primarily due to economic uncertainty and high inflation. Despite this, the market is driven by trends such as sustainability, energy efficiency, and smart features. The government's rebate program for energy-efficient appliances has boosted value sales growth, and brands like LG Electronics and Samsung Electronics are capitalising on these trends with innovative products. The rising number of single-person hous

The small cooking appliances market in South Korea is experiencing a slowdown, with most subcategories showing negative growth in 2025. Despite this, certain trends are driving sales, such as the demand for smart and AI-powered products, and the convenience and customisation trend. The market is characterised by strong brand loyalty and a focus on premium products, with retail e-commerce being the leading distribution channel. As consumers continue to prioritise convenience, personalisation, and

The consumer appliances market in South Korea faced negative growth in 2025, with a retail volume decrease to 50 million units, representing a -3% growth rate, primarily due to economic challenges and declining consumer spending. Despite this, the market remains attractive due to its potential for growth driven by trends such as premiumisation, multifunctionality, and the increasing demand for smart and energy-efficient appliances. The forecast indicates a shift towards a more stable economic co

The food preparation appliances market in South Korea is characterised by a decline in retail volume, albeit at a slower rate than in previous years, with a 7% decrease in 2025. Despite this, the health and wellness trend is driving value sales growth, with brands introducing multifunctional and portable devices. The market is expected to continue its decline over the forecast period, with a forecast CAGR of -4% to KRW205 billion by 2030. To succeed, brands should focus on innovation, particular

The air conditioners market in South Korea experienced significant growth in 2025, driven by record-breaking heatwaves and increasing consumer demand for energy-efficient and technologically advanced products. With a high penetration rate of 93%, the market continued to grow due to the need for more efficient and innovative products. The forecast CAGR of 8% indicates a promising growth trajectory, driven by increasing urbanisation. To succeed, brands should focus on innovation, particularly in e

The heat pumps category in South Korea is experiencing significant growth driven by the trend of eco-friendly climate control, with value sales growth influenced by rising environmental concerns and government sustainability goals. In 2025, air source heat pumps led the category with a retail volume of 38,900 units, while ground source heat pumps and other heat pumps contributed 6,200 units and 3,500 units, respectively. The market is expected to continue growing, driven by government initiative

South Korea’s packaging industry saw a decisive shift towards eco-friendly materials and right-sized packs in 2024, driven by sustainability goals and economic pressures. Across industries, novel pack formats like paper-based bottles, refill pouches and label-free containers gained ground as companies worked to cut plastic waste and meet growing demand for “green” packaging. For example, beauty giant Amorepacific replaced many plastic cosmetic containers with glass jars and even launched a shamp