South Korea’s credit card spending grew at a slower pace in March than a year earlier as the economic slowdown dented consumer sentiment, a trade association said Tuesday.
Purchases made with credit cards totaled 45.3 trillion won ($40.5 billion) last month, up 5.6 percent from the 42.9 trillion won tallied a year earlier, according to the data compiled by the Credit Finance Association.
The number is far lower than the 14.5 percent on-year growth tallied in March 2012, the data showed. The figure includes spending with credit, debit, and prepaid cards. Cash advances, overseas spending and card loans are excluded.
The country’s card spending sank to an all-time low in February growing 3.4 percent on-year.
The association said the slowdown in plastic spending came as consumers refrained from making purchases with credit cards due to the gloomy outlook on the country’s economy. The government’s move to tighten credit card regulations to reduce the country’s record-high household debt also contributed to the slowdown, it added.
Purchases at large discount stores increased 5.8 percent on-year last month due mainly to higher prices of goods. Payments at smaller supermarkets advanced 8.5 percent as well. (Yonhap News)
