Q2 Card Approval Amount Increased 14.8% to 280 Trillion Won... Impact of Social Distancing Lift

"Consumer Sentiment Recently Shifts to a Downward Trend"

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] The total card approval amount in the second quarter (April to June) increased by approximately 15%. This is interpreted as a result of the activation of consumption, travel, and gatherings following the lifting of COVID-19 social distancing measures, as well as an increase in industrial production.

The Korea Credit Finance Association announced on the 29th that the total card approval amount and the number of approvals in February were 280.7 trillion KRW and 6.61 billion transactions, respectively. These figures represent increases of 14.8% and 11.4% compared to the same period last year.

Looking at the performance by card type, credit card approval amounts and transactions were 219.9 trillion KRW and 4.05 billion transactions, up 14.9% and 10.7%, respectively. For check cards, the amounts and transactions were 59.8 trillion KRW and 2.52 billion transactions, expanding by 13.6% and 12.0%, respectively. Additionally, personal cards recorded approval amounts and transactions of 226.2 trillion KRW and 6.23 billion transactions, increasing by 13.4% and 11.6%, respectively. Corporate cards showed 54.7 trillion KRW and 390 million transactions, rising by 20.6% and 8.4%, respectively.

Among the eight industries closely related to consumer spending, known as 'consumer-intensive industries,' the transportation sector had the highest growth rate at 74.1%. This was followed by ▲ business facility management and business support services (38.4%) ▲ accommodation and food services (27.6%) ▲ arts, sports, and leisure-related services (22.7%) ▲ wholesale and retail trade (13.0%) ▲ associations, organizations, repair, and other personal services (11.8%) ▲ educational services (11.8%) ▲ health and social welfare services (6.3%).

Other indicators underlying the increase in card approval amounts and transactions continue to show growth. The consumer price index in the second quarter rose by 5.4% to 107.54, and online shopping transaction volume increased by 8.0% to 33.746 trillion KRW in April and May. Additionally, rising oil prices and increased vehicle usage continue, and travel and leisure-related indicators such as air tourism, dining out, and movie theaters are also on an upward trend.

The Korea Credit Finance Association stated, "With the lifting of social distancing, activation of travel and gatherings, and increased industrial production, domestic demand improvement has continued, maintaining the growth trend in card approval performance." However, it added, "Due to worsening external economic conditions and rising prices, consumer sentiment has recently shifted to a downward trend."

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