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November 06, 2009
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| Local credit card spending rose at its slowest pace in three months as Koreans spent less time shopping and more time with their families during the Chuseok holiday, which fell in the first week of October, according to data from the Korea Credit Finance Association. The association announced yesterday that just under 28.3 trillion won ($23.9 billion) was spent in card swipes last month, up 2 percent from September and 9.44 percent from a year earlier. That figure excludes cash advances, overseas spending and corporate cards. The single-digit growth showed a marked slowdown from September, when spending jumped 15 percent from a year earlier, the quickest growth in 2009. That figure fed hopes that consumer spending could be recovering to pre-crisis levels. Before the financial crash, monthly credit card spending here usually grew at about 20 percent from 2008. The KCFA said September’s surprisingly upbeat figure was largely thanks to a series of government tax benefits for new car buyers and the pre-Chuseok shopping spree, when people spent on food for traditional family rituals and gifts for relatives. “Growth somewhat slowed down in October because of reduced card spending during the actual holiday,” the association said in a statement. In the narrow realm of automobile purchases, the tax benefits continued to have their desired effect, with many Koreans putting their monthly installments for new cars on their cards. Payments on autos totaled 1.2 trillion won in October, up 134 percent on-year. Credit card spending growth was 3.89 percent in January, rising to 6.67 percent in February and continuing up until it peaked at 12.44 percent in June. The figure fell to 7.26 percent in July, but recovered to 10.9 percent in August. By Jung Ha-won [hawon@joongang.co.kr] |
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