Credit card use in Korea

According to the report of the Bank of Korea (BOK) in the first quarter of the year credit card use by Koreans traveling overseas, which includes debit cards, reached $1.83 billion which is 30.2% increase in comparison with the previous year. It is the largest amount in the history of the bank since it began registering these records in 1976.

``The sharp rise was mainly attributable to an increase in the number of Koreans traveling abroad between January and March during the Lunar New Year holidays,'' says Jung Sun-young, BOK senior economist.

``A rise in overseas travel expenses coupled with popularization of credit card-based settlements is another key factor,'' she adds. ``Koreans are tending to lavish more money abroad than before.''

In the first quarter overseas card spending amounted $766 per capita, the same index last year made up $712 and in the preceding quarter it was $730. along with another report on household income these data prompts that Korean economy becomes more consumption driven.

The spending amounts of nearly 32% of all Korean families and 56% of low-income families are more than their incomes. 2.38 million Koreans used credit card abroad. The figure is a 21% rise from the preceding year and 3.3% increase form the previous quarter.

On the other hand credit card spending of foreign citizens in Korea in the first quarter made up $510 million, a 1.6 percent rise from a year earlier and a 19% decrease from the previous quarter. There were 1.04 million foreign residents who used credit cards which is a 16.3 drop from the preceding year. Card use accounted for $491 per capita, a 21.3% decrease.