Corporate credit card spending declined at restaurants, bars and golf courses in South Korea in October, apparently affected by the introduction of a tough anti-corruption law.
The legislation took effect in late September, covering millions of public servants, school teachers and journalists nationwide.
Widely called the Kim Young-ran Act after the former supreme court judge who drafted it, the law prohibits them from accepting free meals valued 30,000 won ($25.40) or more and gifts worth 50,000 or more. Violators are subject to hefty fines or even imprisonment.
Many hailed it as a milestone in the business culture of Asia's fourth-biggest economy, especially as a change in lavish corporate hospitality.
As expected, corporate credit card spending at local bars fell 15.1 percent on-year to 85.3 billion won in October, according to the Credit Finance Association. The use of personal credit cards also dropped 2.3 percent to 290 billion won.
Corporate card use at restaurants also dipped 0.2 percent to 1.39 trillion won during the month, while that of individual cards increased 9.7 percent to 6.79 trillion won.
Entire corporate card spending came to 15.2 trillion won in the month, up 26.5 percent from a year earlier. Total credit card spending jumped 12.4 percent on-year to 62.5 trillion won.
"Corporate card use decreased at some businesses such as restaurants, bars and golf courses. In general, however, the negative impact on consumption seems trivial despite worries raised before the law came into force," said Jung Chae-joong, a researcher at the association's research center.
Credit card purchases at retailers notably climbed amid the government's drive in October to boost domestic spending through the month-long Korea Sale Festa, he added. (Yonhap)
