Proliferation of ‘Refrigerator Cards’ Raises Concerns – Consumer Sentiment and Rising Interest Rates Drive the Trend

The landscape of credit card usage in South Korea is concerning. A new term, ‘refrigerator cards,’ has emerged, reflecting a surge in credit card usage as consumers pull out dormant cards. According to Maekyung News, credit card companies are expressing ‘resignation’ to this trend. This is driven by a combination of factors: a weakening consumer sentiment and rapid interest rate hikes. ‘Refrigerator cards’ represent more than just an increase in credit card usage; it signifies consumers’ deliberate retention of cards in inactive status, driven by concerns about future uncertainty or a desire to curb spending. The proliferation of these refrigerator cards can be interpreted as a harbinger of broader economic anxieties.

The Genesis and Background of the ‘Refrigerator Card’ Phenomenon

The ‘refrigerator card’ phenomenon cannot be simply explained by a weakening consumer sentiment. As of 2026, the South Korean economy is facing persistent pressures of high interest rates and high inflation, which are amplifying consumer anxieties about the future. Particularly, rapid interest rate hikes have increased the burden of household debt and strengthened consumers’ tendency to curb unnecessary spending or accumulate assets for the future. Furthermore, high inflation has eroded consumers’ purchasing power, leading them to increase savings or pull out dormant cards.

The Impact of Rising Interest Rates

The Bank of Korea’s interest rate hikes have increased the interest rates on household loans, adding to the burden of consumers’ interest payments. This has discouraged consumers from taking out new loans and made it difficult for them to repay existing loans, acting as a factor reducing credit card usage. However, at the same time, consumers are also adopting a strategy of increasing credit card usage to curb spending in a high-interest rate environment. This illustrates the complexity of consumer sentiment.

Credit Card Companies’ Response Strategies

Credit card companies are exploring various strategies to respond to the ‘refrigerator card’ phenomenon. First, they are expanding credit card discount benefits to alleviate the burden of interest rates due to rising interest rates. They are also running various promotions to encourage consumers to actively use their cards. However, despite these efforts, the ‘refrigerator card’ phenomenon is not easily resolved.

The Impact of the ‘Refrigerator Card’ Phenomenon on the Economy

The ‘refrigerator card’ phenomenon can be interpreted as a harbinger of broader economic anxieties. Consumers who are using ‘refrigerator cards’ are preparing for future uncertainty or intending to curb their spending. This exacerbates the weakening of consumer sentiment and can hinder economic growth. Furthermore, the ‘refrigerator card’ phenomenon can worsen the profitability of credit card companies and threaten the stability of the financial system.

Future Outlook

The ‘refrigerator card’ phenomenon is expected to persist in the future. As long as the uncertainty surrounding the South Korean economy does not dissipate, consumer anxieties about the future will not easily disappear. Therefore, the government and the Bank of Korea should continue to pursue economic stabilization policies and efforts to alleviate the burden of household debt. Furthermore, credit card companies should develop various policies to encourage consumers to actively use their cards.