Terminal 2 of Incheon International Airport is crowded with outbound travelers, Wednesday. Yonhap

NH Nonghyup Financial Group marks the last of the top five financial groups to enter the competitive market for specialized cards targeting Koreans traveling overseas. With the market already saturated, intense competition is anticipated among companies to differentiate their products.

NH Nonghyup Bank and Card announced the launch of Travely, a card specialized for overseas travel, Thursday.

"We get to present this card in summer vacation peak season," an official from NH Nonghyup Card said. "As the latest entrant in the travel card market, we have put a lot of effort into differentiating our offerings."

The travel card market has been particularly dynamic since January, when Toss Bank launched a foreign currency account tied to the Toss card, with zero commissions on money exchange. The internet-only bank drew over 1 million customers within four months.

Five major financial groups quickly followed suit. Hana Card, with its existing travel-specialized card Travlog, immediately announced zero commission fees for money exchange. Shinhan, KB Kookmin and Woori Card also released cards offering similar benefits shortly after.

Such cards offer the advantage of attracting younger customers while helping to reduce costs associated with purchasing and storing foreign currencies, according to industry officials.

The surge in vacationing abroad has led to a significant increase in demand for foreign transactions, luring financial companies into the competitive arena.

According to the Credit Finance Association, last year's overseas spending by individuals using credit cards from nine domestic card companies reached 16.85 trillion won ($12.1 billion), a 41 percent increase from the previous year.

A promotional image for Travlog / Screenshot from Hana Card's Instagram

However, many of these services are quite similar across providers. Most offer free foreign exchange services for various currencies 24/7, waive overseas payment fees and have zero-fee cash withdrawals from local ATMs.

As companies continue matching each other's benefits, customers feel little incentive to switch to new offerings. For instance, if one company expands the number of currencies available for free exchange, competitors quickly follow suit. Free airport lounge access, initially a premium service, has also become standard.

"The cards offer no-fee services, so they don't present significant opportunities for profitability. As benefits become standardized, it is anticipated that customers will increasingly gravitate toward providers offering unique and differentiated experiences," an industry official said.

The competition in the industry is expected to intensify. In addition to the service offering zero commissions on money exchange, internet-only banks are also launching free foreign exchange transfer services within their apps.

On Aug. 20, Toss Bank will expand its services by allowing foreign currency transfers between customers using its foreign currency accounts without any additional fees. In June, KakaoBank introduced its Dollar Box service, enabling customers to send accumulated dollars as gifts through KakaoTalk.