South Korea's credit card spending grew at a slower pace in April from a year earlier as the economic slowdown continued to dent consumer sentiment, a trade association said Tuesday.
Purchases made with plastic cards totaled 44.8 trillion won ($40.1 billion) last month, up 4.5 percent from the 42.9 trillion won tallied a year earlier, according to the data compiled by the Credit Finance Association (CREFIA).
The country's card spending sank to an all-time low in February, growing 3.4 percent on-year.
The association said the slowdown came as consumers refrained from making purchases with plastics amid the protracted economic slowdown, and credit card companies also reduced expenditures in marketing.
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 moved down 4.2 percent on-year last month, while payments at smaller supermarkets gained 4.5 percent. Spending at department stores shed 17.1 percent.
Card spending on automobile purchases jumped 54.1 percent as more consumers bought vehicles last month following the launch of new models by local carmakers.
Debit cards accounted for 16.6 percent, or 7.4 trillion won of the total card purchases in April, and credit cards accounted for 83.1 percent.
The association said debit card spending is expected to increase down the road in line with the government's tougher regulations on credit cards firms, and an anticipated increase in tax incentives on the use of debit cards.
The association added that the growth of purchase made with plastic cards will continue to slow down in the second quarter as the economic outlook remains bleak. (Yonhap News)
