Abstract
This study investigates the hypothetically influential factors in the profitability of Korean credit card firms based on the findings of previous studies. By using recent Korean credit card business data, the study determines whether internal and external factors affect profitability in the operating activities of credit card firms. The main findings are as follows. First, Korean credit card firms are mainly affected by the portion of the interest margin contribution from the perspective of business diversification. Second, the level of risk management in Korean credit card firms plays a critical role in enhancing their profitability. Third, large asset investment is not helpful in increasing the profitability of Korean credit card firms.Keywords: Hypothetically Influential Factors; Interest Margin Contribution; Level of Risk Management; Large Asset Investment.
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