South Korea Gift Card Market Overview, 2029

The gift card market in South Korea has experienced rapid expansion, influenced by the nation’s digital advancements, mobile payment infrastructure, and cultural preferences for gifting on special occasions. South Korea is one of the most digitally connected countries in the world, with a high smartphone penetration rate and widespread use of mobile payment solutions like KakaoPay, Samsung Pay, and Naver Pay. The integration of gift cards into these digital wallets has made them an increasingly popular choice for consumers. Traditionally, South Korean gift-giving customs involved cash or physical items, but gift cards are becoming more popular, especially among younger generations who value convenience and flexibility. The market includes a mix of closed-loop and open-loop gift cards. Closed-loop gift cards, such as those offered by retail chains like Lotte, Shinsegae, and GS25, are popular for shopping and dining experiences, while open-loop cards provided by financial institutions like KB Kookmin and Hana Bank offer the versatility of being used across multiple stores and services. Digital gift cards, which can be sent instantly via email or messaging apps, have gained traction as last-minute or convenient gifting options. The growing acceptance of gift cards in South Korea’s consumer landscape reflects the country’s shift towards a more digital, cashless society and a more practical approach to gifting.

According to the research report "South Korea Gift Card Market Overview, 2029," published by Bonafide Research, the South Korea Gift Card market is expected to reach a market size of more than USD 14.69 Billion by 2029. Mobile commerce has become a dominant force in South Korea’s retail sector, with platforms like Coupang, Gmarket, and 11st leading the way. These platforms have integrated gift card offerings, allowing customers to purchase gift cards that can be redeemed for various products across categories such as electronics, beauty, fashion, and more. Gift cards are especially popular during major sales events such as Singles’ Day, White Day, and the Chuseok holiday, where consumers look for versatile gifting options. The ease of purchasing and redeeming digital gift cards through popular messaging apps like KakaoTalk has further accelerated their adoption. In South Korea, where KakaoTalk is ubiquitous, digital gift cards have become a social currency, allowing users to send gifts instantly, along with personalized messages or e-coupons, to friends and family. Additionally, corporate gifting is a significant segment within South Korea’s gift card market, as companies frequently use gift cards as incentives, rewards, and bonuses for employees. This trend is driven by the flexibility and ease of managing corporate budgets through digital gift cards, which can be easily tracked and customized for each recipient. With South Korea’s advanced digital infrastructure and the high acceptance of mobile payments, the gift card market is set to expand further, benefiting both retailers and consumers.

In South Korea, the gift card market has gained strong traction, with closed-loop and open-loop cards serving as popular options for both personal and corporate gifting. Closed-loop cards are widely used and often associated with major South Korean retailers and brands such as Lotte, Shinsegae, and E-Mart, where these cards encourage brand loyalty and regular shopping. These cards are typically issued for in-store use, and they are particularly popular during key gifting periods like Chuseok (Korean Thanksgiving) and Seollal (Lunar New Year), when many people exchange gifts as tokens of appreciation and respect. In recent years, the popularity of e-gift cards has surged, especially as younger generations favor digital convenience. E-cards, typically accessed through mobile apps, are redeemable online and at physical locations, making them highly convenient for tech-savvy South Korean consumers. Open-loop cards, backed by payment networks like Visa and Mastercard, are also prevalent, particularly in urban areas where consumers appreciate their versatility and broad acceptance. These cards are especially popular among young professionals and travelers, who value the freedom to use them at various locations, from cafes and restaurants to retail stores and even abroad. In the corporate sphere, open-loop cards are a preferred option for employee rewards and client appreciation, as they offer flexibility and the freedom to choose, which aligns well with the personalized approach favored in South Korea’s work culture.

The South Korean gift card market also encompasses a range of price points, including high, medium, and low-value cards, each catering to different needs and social norms. High-value cards, generally over KRW 100,000, are often reserved for significant occasions, such as weddings, business milestones, and family gatherings during traditional holidays. These cards are typically redeemable for premium products or services, such as electronics, high-end cosmetics, and gourmet dining, making them a popular choice among businesses for corporate gifting and among individuals for prestigious events. Companies across sectors like tech, finance, and retail in South Korea use high-value cards as rewards for top performers, as part of employee recognition programs, and as client appreciation gifts. Medium-value cards, which usually range between KRW 30,000 and KRW 100,000, are extremely popular for a wide array of general gift-giving occasions, including birthdays, anniversaries, and smaller holidays. Brands like Olive Young, Starbucks, and Coupang offer gift cards in this range, making them accessible yet meaningful gifts that recipients can use for personal care items, fashion, food, or everyday essentials. These cards are versatile, allowing givers to provide recipients with options without overwhelming them, which is especially appreciated in a society that values both thoughtfulness and practicality. Low-value cards, typically valued at KRW 10,000 to KRW 30,000, are popular as smaller gestures of gratitude, suitable for acquaintances, coworkers, or as tokens of thanks. They’re commonly used in promotional campaigns and customer loyalty programs, especially within food chains, cafes, and convenience stores, where brands like GS25 and CU offer these low-value cards as a way to build customer loyalty and encourage repeat business.

In South Korea, both retailers and corporate institutions utilize gift cards strategically to enhance consumer engagement, drive brand loyalty, and strengthen employee relations. Retailers, ranging from luxury department stores to popular convenience chains, use gift cards to boost seasonal sales, especially around holidays when gift-giving peaks. For instance, department stores such as Hyundai and Lotte often release limited-edition gift cards with unique designs during festive seasons, appealing to customers who appreciate the cultural significance and aesthetic value of the cards. Digital gift cards are increasingly popular as well, as the country moves towards cashless transactions and e-commerce grows rapidly. QR code-based and app-integrated gift cards, accessible through platforms like KakaoPay and Naver Pay, provide South Korean consumers with flexible and convenient redemption options both online and in stores. In the corporate sector, companies use gift cards extensively as part of employee incentives, rewards, and client gifts. Open-loop cards are especially favored for their flexibility, enabling recipients to make purchases according to their own needs and preferences, which aligns with South Korea’s increasingly personalized approach to corporate gifting. Digital gift cards have also gained traction in corporate settings, particularly as remote work has expanded, making digital solutions both practical and desirable. Many companies now distribute e-gift cards for remote employees as part of their welfare programs or holiday bonuses, offering a flexible and environmentally friendly solution for acknowledging employee contributions. By blending cultural traditions with modern convenience, the South Korean gift card market has evolved to meet diverse consumer needs and enhance corporate relationships, embodying a balance of thoughtfulness, flexibility, and technological integration that resonates well with both individuals and organizations.




Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.