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South Korea Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

  • ID: 5585241
  • Report
  • April 2022
  • Region: South Korea
  • 60 Pages
  • PayNXT360
According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in South Korea is expected to grow by 12.0% on annual basis to reach US$ 6307.7 million in 2022. In value terms, the Loyalty Programs Market in South Korea has recorded a CAGR of 12.5% during 2017–2021. The Loyalty Programs Market in South Korea will continue to grow over the forecast period and is expected to record a CAGR of 11.4% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 5631.6 million in 2021 to reach US$ 9703.7 million by 2026.

With the consumers’ needs becomingly increasingly diverse over the last two years, brands and retailers across different industries have started to offer loyalty points to their customers in South Korea. This has resulted in strong growth in the loyalty programs industry in South Korea, and the trend is expected to continue in the country from the short to medium-term perspective.

From e-commerce platforms to offline retail stores and car manufacturers, more and more brands are taking advantage of the growing loyalty program landscape in South Korea. In the midst of this strong growth in the loyalty programs industry, along with the rise of new technology such as blockchain, firms are launching innovative blockchain-powered rewards programs for their customers in the country.

The loyalty and rewards programs industry in South Korea is one of the more mature ones as compared to some of the other Asian markets, such as India. The publisher expects a lot more innovation to take place in the South Korean loyalty landscape over the next four to eight quarters, which will subsequently drive the growth of the loyalty and rewards programs industry in the country.

In South Korea, Dodo Point, the loyalty platform of South Korean startup Spoqa, is one of the leading players in the loyalty and rewards programs industry. Launched in 2012, the platform has more than 25 million users. Available across 20,000 offline affiliate stores, the loyalty platform is targeting retail stores to gain more market share in the country. Through its innovative loyalty platform, the firm aims at simplifying the loyalty point’s redemption process by eliminating the need for physical loyalty stamps. Apart from Dodo Point, several other South Korean brands, such as Samsung and Hyundai, also have their respective loyalty programs offerings not just in the country but also in the global markets.

Loyalty platforms are turning to blockchain, allowing members to earn crypto in South Korea


To make the loyalty platform more rewarding for consumers in South Korea, firms are partnering with a blockchain project whose goal is to return control of data privacy and monetization back to consumers in the country. For instance,
  • In July 2020, Dodo Point announced that it had entered into a strategic collaboration with Carry Protocol, the blockchain project which aims to return control of data privacy and monetization back to consumers. Under the strategic collaboration, consumers who share their data with Carry Protocol are rewarded in CRE tokens, which can then be redeemed for merchandise or cashed out through a crypto exchange.

The publisher expects loyalty platforms to enter into more such strategic partnerships over the next two to three years, which will make their platforms more attractive for consumers in South Korea.

Blockchain-powered rewards startups are entering into strategic partnerships to expand their market share in South Korea


A growing number of startups have started adopting blockchain technology to develop and launch innovative products. In South Korea, startups are also using blockchain technology to develop rewards platforms. These startups are now entering into strategic partnerships to get access to millions of consumers and boost their growth. For instance,
  • In May 2020, MiL.k, the blockchain-powered rewards platform, announced that the firm had entered into a strategic partnership with Shinsegae Duty Free, a Seoul-based luxury retail space chain, to provide loyalty point compatibility and management. The strategic collaboration will allow Shinsegae customers to connect their existing rewards accounts to the mobile application offered by MiL.k.
  • Once the users have connected their accounts, consumers can trade their Shinsegae loyalty points for the MLK cryptocurrency, which can then be exchanged for reward points at other partnering vendors, including Yanolja, one of the leading travel accommodation platforms in South Korea. Similar trends have been seen in the global market, wherein Rakuten, in Japan, enabled its customers to exchange the loyalty points for three major cryptocurrencies – Bitcoin, Ether, and Bitcoin Cash.

Government is boosting consumer spending through cashback reward programs


The global pandemic outbreak meant that consumers adopted a conservative approach when it came to spending on products and services. However, this consumer behavior towards spending had a direct impact on the South Korean economy. To boost economic recovery in the country, the government has launched a cashback reward program that promotes consumer spending. For instance,
  • In September 2021, the South Korean government announced a cashback rewards program for card spending in October 2021. Notably, the government launched the campaign in an effort to boost private spending amid the fourth Covid-19 wave.
  • The cashback rewards scheme launched by the government for a two-month period will allow consumers to receive up to 100,000 won per month if their card spending exceeds 3% of their monthly average use in Q2 2021. For the rewards program, the government earmarked 700 billion won in its budget.

Scope


This report provides in-depth, data-centric analysis of loyalty in South Korea. Below is a summary of key market segments:

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026


South Korea Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026

  • Loyalty Schemes
  • Loyalty Platforms

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026

  • Point-based Loyalty Program
  • Tiered Loyalty Program
  • Subscription Loyalty Program
  • Perks Loyalty Program
  • Coalition Loyalty Program
  • Hybrid Loyalty Program

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026

  • In-Store
  • Online
  • Mobile

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026

  • Retail
  • Financial Services
  • Healthcare & Wellness
  • Restaurants & Food Delivery
  • Travel & Hospitality (Cabs, Hotels, Airlines)
  • Telecoms
  • Media & Entertainment
  • Others

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026

  • Diversified Retailers
  • Department Stores
  • Specialty Stores
  • Clothing, Footwear & Accessories
  • Toy & Hobby Shops
  • Supermarket and Convenience Store
  • Home Merchandise
  • Other

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026

  • Card Based Access
  • Digital Access

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026

  • B2C Consumers
  • B2B Consumers

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026

  • Software
  • Services

South Korea Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026

  • Custom Built Platform
  • Off the Shelf Platform

South Korea Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021

  • By Age Group
  • By Income Level
  • By Gender

Reasons to buy

  • In-depth Understanding of Loyalty Programs Market Dynamics: Understand market opportunities and key trends along with forecast (2017-2026).
  • Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
  • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate loyalty strategy; assess market specific key trends, drivers, and risks in the industry.
Note: Product cover images may vary from those shown

1 About this Report
1.1 Summary
1.2 Methodology
1.3 Loyalty Definitions
1.4 Disclaimer
2 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
3 South Korea Key Market Insight and Innovation
3.1 South Korea Consumer Behavior
3.2 South Korea Competitive Landscape and Growth Strategies
3.3 South Korea Regulation Trends
4 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
4.1 South Korea Loyalty Spend Share by Functional Domains, 2017-2026
4.2 South Korea Loyalty Spend Value by Loyalty Schemes, 2017-2026
4.3 South Korea Loyalty Spend Value by Loyalty Platforms, 2017-2026
5 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
5.1 South Korea Loyalty Spend Share by Loyalty Program Type, 2017-2026
5.2 South Korea Loyalty Spend Value by Point-based Loyalty Program, 2017-2026
5.3 South Korea Loyalty Spend Value by Tiered Loyalty Program, 2017-2026
5.4 South Korea Loyalty Spend Value by Subscription Loyalty Program, 2017-2026
5.5 South Korea Loyalty Spend Value by Perks Loyalty Program, 2017-2026
5.6 South Korea Loyalty Spend Value by Coalition Loyalty Program, 2017-2026
5.7 South Korea Loyalty Spend Value by Hybrid Loyalty Program, 2017-2026
6 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Channel
6.1 South Korea Loyalty Spend Share by Channel, 2017-2026
6.2 South Korea Loyalty Spend Value by In-Store, 2017-2026
6.3 South Korea Loyalty Spend Value by Online, 2017-2026
6.4 South Korea Loyalty Spend Value by Mobile, 2017-2026
7 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
7.1 South Korea Loyalty Spend Share by Key Sectors, 2017-2026
7.2 South Korea Loyalty Spend Value in Retail, 2017-2026
7.3 South Korea Loyalty Spend Value in Financial Services, 2017-2026
7.4 South Korea Loyalty Spend Value in Healthcare & Wellness, 2017-2026
7.5 South Korea Loyalty Spend Value in Restaurants & Food Delivery, 2017-2026
7.6 South Korea Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines), 2017-2026
7.7 South Korea Loyalty Spend Value in Telecoms, 2017-2026
7.8 South Korea Loyalty Spend Value in Media & Entertainment, 2017-2026
7.9 South Korea Loyalty Spend Value in Others, 2017-2026
8 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Retail
8.1 South Korea Loyalty Spend Share by Retail Segments, 2017-2026
8.2 South Korea Loyalty Spend Value by Diversified Retailers, 2017-2026
8.3 South Korea Loyalty Spend Value by Department Stores, 2017-2026
8.4 South Korea Loyalty Spend Value by Specialty Stores, 2017-2026
8.5 South Korea Loyalty Spend Value by Clothing, Footwear & Accessories, 2017-2026
8.6 South Korea Loyalty Spend Value by Toy & Hobby Shops, 2017-2026
8.7 South Korea Loyalty Spend Value by Supermarket and Convenience Store, 2017-2026
8.8 South Korea Loyalty Spend Value by Home Merchandise, 2017-2026
8.9 South Korea Loyalty Spend Value by Other, 2017-2026
9 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
9.1 South Korea Loyalty Spend Share by Accessibility, 2017-2026
9.2 South Korea Loyalty Spend Value by Card Based Access, 2017-2026
9.3 South Korea Loyalty Spend Value by Digital Access, 2017-2026
10 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
10.1 South Korea Loyalty Spend Share by Consumer Type, 2017-2026
10.2 South Korea Loyalty Spend Value by B2C Consumers, 2017-2026
10.3 South Korea Loyalty Spend Value by B2B Consumers, 2017-2026
11 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
11.1 South Korea Loyalty Spend Share by Loyalty Platform, 2017-2026
11.2 South Korea Loyalty Spend Value by Software, 2017-2026
11.3 South Korea Loyalty Spend Value by Services, 2017-2026
12 South Korea Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms
12.1 South Korea Loyalty Spend Share by Software Platforms, 2017-2026
12.2 South Korea Loyalty Spend Value by Custom Built Platform, 2017-2026
12.3 South Korea Loyalty Spend Value by Off the Shelf Platform, 2017-2026
13 South Korea Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior
13.1 South Korea Loyalty Spend Share by Age Group, 2021
13.2 South Korea Loyalty Spend Share by Income Level, 2021
13.3 South Korea Loyalty Spend Share by Gender, 2021
14 Further Reading
14.1 About the Publisher

List of Figures

Figure 1: Methodology Framework
Figure 2: South Korea Total Loyalty Spend Value (US$ Million), 2017-2026
Figure 3: South Korea Loyalty Spend Share By Functional Domains (%), 2017-2026
Figure 4: South Korea Loyalty Spend Value by Loyalty Schemes (US$ Million), 2017-2026
Figure 5: South Korea Loyalty Spend Value by Loyalty Platforms (US$ Million), 2017-2026
Figure 6: South Korea Loyalty Spend Share By Loyalty Program Type (%), 2021 Vs 2026
Figure 7: South Korea Loyalty Spend Value by Point-based Loyalty Program (US$ Million), 2017-2026
Figure 8: South Korea Loyalty Spend Value by Tiered Loyalty Program (US$ Million), 2017-2026
Figure 9: South Korea Loyalty Spend Value by Subscription Loyalty Program (US$ Million), 2017-2026
Figure 10: South Korea Loyalty Spend Value by Perks Loyalty Program (US$ Million), 2017-2026
Figure 11: South Korea Loyalty Spend Value by Coalition Loyalty Program (US$ Million), 2017-2026
Figure 12: South Korea Loyalty Spend Value by Hybrid Loyalty Program (US$ Million), 2017-2026
Figure 13: South Korea Loyalty Spend Share by Channel (%), 2017-2026
Figure 14: South Korea Loyalty Spend Value by In-Store (US$ Million), 2017-2026
Figure 15: South Korea Loyalty Spend Value by Online (US$ Million), 2017-2026
Figure 16: South Korea Loyalty Spend Value by Mobile (US$ Million), 2017-2026
Figure 17: South Korea Loyalty Spend Share by Key Sectors (%), 2021 Vs 2026
Figure 18: South Korea Loyalty Spend Value in Retail (US$ Million), 2017-2026
Figure 19: South Korea Loyalty Spend Value in Financial Services (US$ Million), 2017-2026
Figure 20: South Korea Loyalty Spend Value in Healthcare & Wellness (US$ Million), 2017-2026
Figure 21: South Korea Loyalty Spend Value in Restaurants & Food Delivery (US$ Million), 2017-2026
Figure 22: South Korea Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines) (US$ Million), 2017-2026
Figure 23: South Korea Loyalty Spend Value in Telecoms (US$ Million), 2017-2026
Figure 24: South Korea Loyalty Spend Value in Media & Entertainment (US$ Million), 2017-2026
Figure 25: South Korea Loyalty Spend Value in Others (US$ Million), 2017-2026
Figure 26: South Korea Loyalty Spend Share by Retail Segments (%), 2021 Vs 2026
Figure 27: South Korea Loyalty Spend Value by Diversified Retailers (US$ Million), 2017-2026
Figure 28: South Korea Loyalty Spend Value by Department Stores (US$ Million), 2017-2026
Figure 29: South Korea Loyalty Spend Value by Specialty Stores (US$ Million), 2017-2026
Figure 30: South Korea Loyalty Spend Value by Clothing, Footwear & Accessories (US$ Million), 2017-2026
Figure 31: South Korea Loyalty Spend Value by Toy & Hobby Shops (US$ Million), 2017-2026
Figure 32: South Korea Loyalty Spend Value by Supermarket and Convenience Store (US$ Million), 2017-2026
Figure 33: South Korea Loyalty Spend Value by Home Merchandise (US$ Million), 2017-2026
Figure 34: South Korea Loyalty Spend Value by Other (US$ Million), 2017-2026
Figure 35: South Korea Loyalty Spend Share by Accessibility (%), 2021 Vs 2026
Figure 36: South Korea Loyalty Spend Value by Card Based Access (US$ Million), 2017-2026
Figure 37: South Korea Loyalty Spend Value by Digital Access (US$ Million), 2017-2026
Figure 38: South Korea Loyalty Spend Share by Consumer Type (%), 2021 Vs 2026
Figure 39: South Korea Loyalty Spend Value by B2C Consumers (US$ Million), 2017-2026
Figure 40: South Korea Loyalty Spend Value by B2B Consumers (US$ Million), 2017-2026
Figure 41: South Korea Loyalty Spend Share by Loyalty Platform (%), 2021 Vs 2026
Figure 42: South Korea Loyalty Spend Value by Software (US$ Million), 2017-2026
Figure 43: South Korea Loyalty Spend Value by Services (US$ Million), 2017-2026
Figure 44: South Korea Loyalty Spend Share by Software Platforms (%), 2021 Vs 2026
Figure 45: South Korea Loyalty Spend Value by Custom Built Platform (US$ Million), 2017-2026
Figure 46: South Korea Loyalty Spend Value by Off the Shelf Platform (US$ Million), 2017-2026
Figure 47: South Korea Loyalty Spend Share by Age Group (%), 2021
Figure 48: South Korea Loyalty Spend Share by Income Level (%), 2021
Figure 49: South Korea Loyalty Spend Share by Gender (%), 2021

List of Tables

Table 1: South Korea Total Loyalty Spend Value (US$ Million), 2017-2026
Table 2: South Korea Loyalty Spend Value by Loyalty Schemes (US$ Million), 2017-2026
Table 3: South Korea Loyalty Spend Value by Loyalty Platforms (US$ Million), 2017-2026
Table 4: South Korea Loyalty Spend Value by Point-based Loyalty Program (US$ Million), 2017-2026
Table 5: South Korea Loyalty Spend Value by Tiered Loyalty Program (US$ Million), 2017-2026
Table 6: South Korea Loyalty Spend Value by Subscription Loyalty Program (US$ Million), 2017-2026
Table 7: South Korea Loyalty Spend Value by Perks Loyalty Program (US$ Million), 2017-2026
Table 8: South Korea Loyalty Spend Value by Coalition Loyalty Program (US$ Million), 2017-2026
Table 9: South Korea Loyalty Spend Value by Hybrid Loyalty Program (US$ Million), 2017-2026
Table 10: South Korea Loyalty Spend Value by In-Store (US$ Million), 2017-2026
Table 11: South Korea Loyalty Spend Value by Online (US$ Million), 2017-2026
Table 12: South Korea Loyalty Spend Value by Mobile (US$ Million), 2017-2026
Table 13: South Korea Loyalty Spend Value in Retail (US$ Million), 2017-2026
Table 14: South Korea Loyalty Spend Value in Financial Services (US$ Million), 2017-2026
Table 15: South Korea Loyalty Spend Value in Healthcare & Wellness (US$ Million), 2017-2026
Table 16: South Korea Loyalty Spend Value in Restaurants & Food Delivery (US$ Million), 2017-2026
Table 17: South Korea Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines) (US$ Million), 2017-2026
Table 18: South Korea Loyalty Spend Value in Telecoms (US$ Million), 2017-2026
Table 19: South Korea Loyalty Spend Value in Media & Entertainment (US$ Million), 2017-2026
Table 20: South Korea Loyalty Spend Value in Others (US$ Million), 2017-2026
Table 21: South Korea Loyalty Spend Value by Diversified Retailers (US$ Million), 2017-2026
Table 22: South Korea Loyalty Spend Value by Department Stores (US$ Million), 2017-2026
Table 23: South Korea Loyalty Spend Value by Specialty Stores (US$ Million), 2017-2026
Table 24: South Korea Loyalty Spend Value by Clothing, Footwear & Accessories (US$ Million), 2017-2026
Table 25: South Korea Loyalty Spend Value by Toy & Hobby Shops (US$ Million), 2017-2026
Table 26: South Korea Loyalty Spend Value by Supermarket and Convenience Store (US$ Million), 2017-2026
Table 27: South Korea Loyalty Spend Value by Home Merchandise (US$ Million), 2017-2026
Table 28: South Korea Loyalty Spend Value by Other (US$ Million), 2017-2026
Table 29: South Korea Loyalty Spend Value by Card Based Access (US$ Million), 2017-2026
Table 30: South Korea Loyalty Spend Value by Digital Access (US$ Million), 2017-2026
Table 31: South Korea Loyalty Spend Value by B2C Consumers (US$ Million), 2017-2026
Table 32: South Korea Loyalty Spend Value by B2B Consumers (US$ Million), 2017-2026
Table 33: South Korea Loyalty Spend Value by Software (US$ Million), 2017-2026
Table 34: South Korea Loyalty Spend Value by Services (US$ Million), 2017-2026
Table 35: South Korea Loyalty Spend Value by Custom Built Platform (US$ Million), 2017-2026
Table 36: South Korea Loyalty Spend Value by Off the Shelf Platform (US$ Million), 2017-2026
Note: Product cover images may vary from those shown

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