Credit card installment purchases fell to a 10-quarter low in the first quarter as a revised financial rule and the economic slump dampened consumers’ sentiment, data showed Wednesday.
According to the data compiled by the Bank of Korea, the country’s credit card installment buying came to 20.2 trillion won ($18.1 billion) in the January-March period, down 17.1 percent from three months earlier.
In contrast, the amount of single payment purchases edged down 1.9 percent over the cited period to reach 68.9 trillion won in the first quarter.
Market watchers said a sharp decline in the country’s card installment purchases came as local credit card firms reduced their interest-free services due to a revised financial act.
The reduction came as credit card member stores refused to follow the new rule, which stated they must share the burden of maintaining the interest-free installment purchase program with the credit card firms. (Yonhap News)
