Dublin, March 17, 2025 (GLOBE NEWSWIRE) — The “South Korea Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The gift card market in South Korea is expected to grow by 8.4% on annual basis to reach US$7.56 billion in 2025. South Korea’s gift card market experienced robust growth during 2020-2024, achieving a CAGR of 9.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 7.4% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 6.98 billion to approximately USD 10.07 billion.
This report provides a detailed data-centric analysis of the gift card sector in South Korea, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics.
It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
Key Insights
The South Korean gift card market is evolving rapidly, propelled by digitalization, corporate demand, and expanding retail collaborations. These shifts influence consumer behavior and reshape business strategies, positioning the industry for sustained growth. As digital transactions become more prevalent, corporate incentive programs expand, and retailers form new partnerships, the market is expected to remain dynamic. Businesses that invest in personalized and technology-driven gift card solutions will be well-positioned to capture emerging opportunities and maintain a competitive edge.
Rising Adoption of Digital Gift Cards
- The South Korean gift card market is shifting towards digital and e-gift cards, gradually replacing traditional physical formats. This shift is reflected in the increasing availability of digital gift card options from leading retailers and online platforms. Coupang, Gmarket, and 11th have emerged as key players in offering digital gift cards, mirroring the broader expansion of mobile commerce in South Korea’s retail landscape.
- The growing presence of e-commerce and mobile payment solutions has made digital transactions more accessible and convenient for South Korean consumers. The COVID-19 pandemic accelerated this transition as people sought contactless and instant gifting options. Additionally, rising smartphone penetration and widespread internet access have further contributed to the expansion of digital gift cards.
Increasing Use of Gift Cards in Corporate Incentive Programs
- Gift cards in corporate incentive programs are gaining traction in South Korea, with businesses increasingly utilizing them to reward employees and enhance motivation. Companies favor digital gift cards due to their flexibility and ease of distribution, allowing businesses to efficiently manage incentive programs and track usage.
- Companies are adopting gift cards as they offer a customizable and practical solution for employee rewards. Unlike cash incentives, gift cards can be tailored to individual preferences and used across various merchants. Furthermore, they streamline reward distribution for large organizations and integrate seamlessly with employee recognition initiatives.
- Adopting gift cards as part of corporate reward strategies is expected to grow, fueling the broader expansion of the South Korean gift card market. Businesses will likely introduce more personalized and flexible gift card programs to accommodate diverse employee preferences. This trend is set to enhance corporate engagement and drive sustained growth in the sector.
Strengthening Retail Partnerships to Expand Gift Card Offerings
- Retailers in South Korea are increasingly engaging in partnerships to provide consumers with a broader, more personalized selection of gift card options. These collaborations aim to improve accessibility and enhance the overall gifting experience. Major retail chains align with digital platforms to extend their gift card offerings and cater to evolving consumer needs.
- Retailers are pursuing partnerships to attract a wider customer base and offer more customized gifting solutions. By collaborating, businesses can combine their products and services into bundled gift card packages, increasing their appeal. Additionally, fintech companies play a crucial role in these partnerships by integrating advanced payment technologies to enhance digital offerings.
- Retail partnerships are expected to expand the market’s variety and customization of gift card products. This evolution will foster greater consumer engagement and fuel further growth in the sector. As collaborations between retailers, fintech firms, and service providers increase, competition will likely intensify, leading to more innovative and diverse gifting solutions for consumers.
Competitive Landscape of the South Korea Gift Card Market
The South Korean gift card market continues to expand, driven by digital transformation, corporate incentives, and evolving consumer behaviors. Established retailers and new entrants are refining their offerings through technological advancements and strategic collaborations. As competition grows, businesses that invest in innovation, regulatory compliance, and customer-centric solutions will be well-positioned to succeed. With increasing demand for digital convenience, the market is set to witness sustained growth, making gift cards a crucial component of South Korea’s evolving retail and financial landscape.
Current Market Dynamics
- The South Korean gift card industry has seen steady growth, fueled by the widespread adoption of digital gift cards and their integration into corporate incentive programs. As e-commerce and mobile payment platforms continue to grow, traditional physical gift cards are being replaced by digital alternatives, catering to evolving consumer preferences.
- A major driver of this shift has been the impact of the COVID-19 pandemic, which heightened the demand for contactless and convenient gifting solutions. Consumers have increasingly turned to e-gift cards as a practical alternative, while businesses and retailers have expanded their offerings to align with the rise in digital transactions. This trend will continue as mobile commerce further shapes the South Korean retail landscape.
Key Players and Market Share
- Major retail groups such as Lotte Group, Shinsegae, and Hyundai Department Store dominate South Korea’s gift card market. These retailers offer various gift card options for department stores, supermarkets, and digital entertainment. Their strong market presence has contributed to South Korean consumers’ sustained expansion of gift card usage.
- In addition to established players, new entrants are leveraging digital platforms to introduce innovative gift card solutions. Companies such as InComm Payments have expanded their footprint in South Korea through strategic partnerships with local retailers. These new market participants drive increased competition by offering customized and technology-driven gift card solutions, particularly in the digital space.
Recent Launches and Partnerships
- Retailers in South Korea are increasingly collaborating with digital payment providers to enhance their gift card portfolios. Leading retailers, including Lotte and E-Mart, have expanded their offerings to include experiential and lifestyle-related gift cards. These collaborations cater to changing consumer preferences by providing various gifting options beyond traditional retail purchases.
- Although no major mergers and acquisitions have recently been reported in the South Korean gift card market, global trends suggest a growing push toward industry consolidation. Companies seek synergies to improve operational efficiency and expand their reach, positioning themselves for long-term competitiveness in the evolving gift card sector.
Anticipated Market Evolution (Next 2-4 Years)
- In the coming years, the South Korean gift card market is expected to become increasingly competitive as established players and new entrants focus on product innovation. With the continued expansion of e-commerce and digital payments, companies will likely invest in advanced features such as personalized and multi-functional gift cards to better serve customer demands.
- Strategic partnerships and potential mergers could also shape the market landscape, enabling companies to leverage technological advancements and broaden their distribution networks. As competition intensifies, businesses prioritizing convenience, flexibility, and seamless digital experiences will be best positioned to capture market share.
Regulatory Changes
- Recent regulatory developments in South Korea have emphasized consumer protection within the financial services sector, including gift cards. The government has introduced measures requiring increased transparency in gift card terms and conditions, ensuring that consumers are fully informed about expiration dates, redemption policies, and potential limitations.
- Additionally, new regulations focus on fraud prevention and security measures to protect consumers and businesses. Companies operating in the gift card space must ensure compliance with these evolving policies to maintain customer trust and avoid legal and operational risks. Staying informed about regulatory updates will be essential for market participants to operate effectively in this space.
Companies Featured
- emart
- Homeplus Hypermarket
- Olive Young
- Lotte Mart
- NewCore Outlet
- Lotte Department Store
- Shinsegae Department Store
- Himart
- Costco Korea
- Coupang
- Gmarket
- CU
- InComm Payments
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 325 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $7.56 Billion |
| Forecasted Market Value (USD) by 2029 | $10.07 Billion |
| Compound Annual Growth Rate | 7.4% |
| Regions Covered | South Korea |
Report Scope
This report provides in-depth, data-centric analysis of gift card industry in South Korea through 100+ tables and 280+ charts. Below is a summary of key market segments.
- South Korea Total Spend on Gifts
- South Korea Gift Card Market Size by KPIs across Consumer Segments
- South Korea Gift Card Market Size by Consumer Segment
- South Korea Digital Gift Card Market Size
- South Korea Gift Card Market Size by Retail Consumer
- South Korea Gift Card Spend by Consumer Behavior and Demographics
- South Korea Gift Card Market Size by Corporate Consumer
- South Korea Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
- South Korea Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)
- South Korea Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)
- South Korea Gift Card Purchase by Payment Method
For more information about this report visit https://www.researchandmarkets.com/r/4d1q4y
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- South Korean Gift Card and Incentive Card Market
