Card Approval Amounts Up 13.8% in Q4 Last Year "Impact of Consumption Promotion Measures and Vaccination"

[Asia Economy Reporter Yu Je-hoon] The Korea Federation of Credit Finance Associations announced on the 28th that the total card approval amount in the fourth quarter of last year reached 260.6 trillion won, with 6.17 billion approval transactions. This represents an increase of 13.8% each compared to the same period last year.

The growth rates of card approval amount and transaction volume in the fourth quarter are the highest levels throughout the year. The approval amount growth rates were 8.7% in the first quarter, 9.9% in the second quarter, and 8.6% in the third quarter of last year, while the transaction volume growth rates were 3.3%, 5.7%, and 7.3% respectively.

By card type, personal card approval amount and transaction volume were 215.3 trillion won and 5.8 billion transactions, increasing by 14.4% and 14.0% respectively. For corporate cards, the approval amount and transaction volume were 45.4 trillion won and 370 million transactions, up 11.1% and 11.6% compared to the same period last year. By industry, eight sectors closely related to consumer spending showed increases across all industries, including wholesale and retail trade (14.9%), transportation (38.3%), and accommodation and food services (18.1%).

The association explained that the increase in card approval amount and transaction volume is due to economic recovery expectations following the phased return to normal life, as well as the effects of government consumption stimulation policies such as the COVID-19 coexistence national support fund and the coexistence consumption support fund.

The Korea Federation of Credit Finance Associations stated, "Consumption recovery was promoted through the phased return to normal life, the COVID-19 coexistence national support fund, and the consumption support fund projects," adding, "Also, COVID-19 vaccinations and booster shots proceeded smoothly during the fourth quarter, so the increase in confirmed cases and the resulting strengthening of social distancing measures are judged to have had a limited impact on overall consumption."

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