The card industry is witnessing intensifying competition in core component technology, driven by the dual forces of ESG (Environmental, Social, and Governance) management and the spread of digital payments. As eco-friendly material adoption and stable mass production capabilities emerge as new survival requirements, LG Innotek's smart IC technology is drawing industry attention.

■ Card Market Reshaped Simultaneously by ESG and Digital Payments

The global card market is rapidly restructuring around environmental regulations and sustainability, moving beyond its role as a simple payment method. The share of eco-friendly cards made from recycled plastics and bio-based materials is expanding, while major global card companies are reducing their use of conventional PVC materials and strengthening carbon reduction policies across their supply chains. This trend is spreading beyond the card exterior to the internal core component: the IC (integrated circuit).

Smart ICs are core components responsible for payment functionality, security, and data processing performance. In particular, as demand grows for dual-interface cards that support both contact and contactless payments, the standards for IC stability and durability are also rising. The industry believes that the competitiveness of a smart IC depends not merely on performance improvements but on securing stability in actual mass production environments. Since the card industry operates on large-scale production systems, how seamlessly new technologies are compatible with existing manufacturing processes is cited as a key evaluation criterion.

■ LG Innotek Aims for Three Goals: Eco-Friendliness, Durability, and Process Compatibility

To respond to these market changes, LG Innotek is focusing on developing smart IC technology that simultaneously enhances eco-friendliness and performance. The company has applied new material technology that can replace traditional precious metal plating processes, reducing carbon emissions while also improving production efficiency. It has increased durability to ensure stable data recognition even in repetitive card usage environments, and applied a design that minimizes quality degradation over long-term use by enhancing resistance to surface damage. This approach is evaluated as one that considers both payment stability and user experience.

In terms of the manufacturing process, the company is also striving to secure high compatibility with existing smart card production lines, thereby reducing the burden of additional facility investments. This is cited as a factor that can lower the production delays and cost burdens that may arise when global card manufacturers adopt new technologies.

■ "Trinity of Eco-Friendliness, Performance, and Mass Production Stability Will Determine Competitiveness"

The market forecasts that the importance of smart ICs will grow further as tightened ESG regulations and the spread of digital payments progress simultaneously. Analysts predict that technology satisfying eco-friendliness, performance, and mass production stability all at once will establish itself as the core standard determining the future competitiveness of the card industry. Industry officials stated, "The card industry is moving beyond a simple expansion phase and transitioning into a high-value-added market centered on high performance and eco-friendliness," adding, "The role of companies that have secured smart IC technology will expand further going forward."

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