South Korea’s card spending stood at around 50 trillion won ($48 billion) last month, up by 2.4 trillion won ― or 5.1 percent ― from the same period last year, according to the Credit Finance Association of Korea on Thursday.
Though the spending rose, the on-year growth rate was still below the 7.2 percent recorded in July last year. The association said this was due to the nation’s prolonged economic downturn.
“In recent months, consumers’ disposable income dropped because of rising apartment rental deposits and consumer confidence also fell from the prolonged economic slowdown,” the association said.
Korean consumers spent most on department store goods (35.9 percent), followed by online commerce purchases (20.1 percent), vehicles (18.8 percent), restaurants (13 percent) and groceries (10.1 percent).
The most significant rise was seen in consumer spending on pets and veterinary hospitals, the figures showed.
Expenditure in these areas stood at 88 billion won last month ― an 18.7 percent increase from the same period last year. This was because the rise of single-member households and an aging population has spurred market growth, according to the statement.
The association also said debit card spending rose 21.9 percent to 9.7 trillion won last month while credit card spending increased only 1.7 percent to 39.8 trillion won. This came as the government has continued to encourage the use of debit cards by offering more income tax deductions in a bid to curb the nation’s rising household debts.
By Shin Ji-hye (
shinjh@heraldcorp.com)
