How to Prepare for Year-End Tax Settlement... "1 in 2 People Pay Only with Credit Cards"

Card Gorilla Survey Results
1 in 2 People Pay Only with Credit Cards,
3 in 4 Focus on a Single Payment Method

[Asia Economy Reporter Ki Ha-young] Amid the increase in income deduction rates this year due to the impact of the novel coronavirus infection (COVID-19), it was found that one out of two people pay exclusively with credit cards.

According to the credit card specialist site Card Gorilla on the 7th, to examine how the increased income deduction rates and limits due to COVID-19 affected card spending, the survey results of "Preparing for the 2021 year-end tax settlement, how are you using your cards?" were compiled as such. This survey was conducted over about three weeks from September 18 to October 5, targeting visitors to the Card Gorilla website, with a total of 1,005 participants.

According to the 2020 tax law amendment, the government raised the income deduction rates for credit cards, check cards/cash receipts, and traditional market/public transportation usage to double, at 30%, 60%, and 80%, respectively, starting this March. Additionally, due to the impact of COVID-19, the rate was uniformly increased to 80% from April to July, and the income deduction limit was raised by 300,000 KRW.

The survey results showed that the top choice was "almost exclusively paying with credit cards," with an overwhelming 46.9% (471 votes). The second was "almost exclusively paying with check cards" (16%, 161 votes), and the third was "payment mainly with local currency, Zero Pay, or cash" (13%, 131 votes). More than three out of four people focused on using one payment method, and credit cards, chosen by one in two people, were identified as the most popular payment method.

The fourth place was "using credit cards and check cards equally" (11.6%, 117 votes). The so-called golden ratio optimized for income deduction, "using credit cards for 25% of annual income and the rest with check cards" (7%, 70 votes), ranked fifth. "Not caring and using anything" (5.5%, 55 votes) was sixth.

Ko Seung-hoon, CEO of Card Gorilla, said, "As the credit card income deduction rate from April to July was raised to 80%, the same level as check cards or cash receipts, it is analyzed that many people used credit cards, which offer better benefits, as their main payment method." He added, "The response that payments were mainly made with local currency, Zero Pay, or cash ranked third relatively high, suggesting that payment methods diversified due to the distribution of emergency disaster relief funds."

This content was produced with the assistance of AI translation services.