Card Approval Amount in Q3 This Year 285.5 Trillion Won... 15.1% Increase YoY

Transport Business Approval Amount Increases 87% as Sky Routes Open

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] The total domestic card approval amount in the third quarter increased by about 15% compared to the same period last year. This is interpreted as being influenced by the lifting of social distancing measures due to the COVID-19 pandemic and high inflation.

The Credit Finance Association announced on the 31st that the total card approval amount in the third quarter was 285.5 trillion KRW, up 15.1% from the same period last year. The total number of card approvals increased by 11.6% to 6.77 billion transactions.

Despite the contraction in consumer sentiment due to high interest rates, the reason for the significant increase in card approval amounts and transactions is attributed to the high consumer price inflation rate. According to the Bank of Korea, the consumer price index in the third quarter was 108.76, a 5.9% increase compared to the same period last year. This contrasts with the consumer sentiment index in September this year, which was 91.4, down more than 10% from 103.7 the previous year.

Specifically, sales related to non-face-to-face and online purchases continued to rise, and vehicle fuel sales increased due to rising oil prices and increased vehicle usage. Additionally, sectors such as aviation, tourism, dining out, and movie theaters showed a recovery in demand following the lifting of social distancing, and offline-centered retail sectors like department stores maintained sales recovery. The association explained, "The lifting of social distancing, improvement in corporate performance, and recovery in employment, leading to increased tax payments by various businesses, are also believed to have had some impact."

By card type, credit card approval amounts increased by 15.8% to 223 trillion KRW, with approval transactions rising 11.5% to 4.14 billion. Check card approval amounts grew 12.4% to 61 trillion KRW, and approval transactions increased 11.4% to 2.56 billion. The share by card type based on approval amount slightly increased for credit cards from 77.6% to 78.1%, while check cards slightly decreased from 21.9% to 21.4%.

Personal card approval amounts rose 13.6% to 232.3 trillion KRW, with approval transactions increasing 11.6% to 6.38 billion. Corporate card approval amounts increased 22.0% to 53.3 trillion KRW, and approval transactions rose 11.0% to 390 million.

The average approval amount per card was 53,804 KRW for credit cards, up 3.9%, and 23,797 KRW for check cards, up 0.9%. For personal cards, it increased 1.8% to 36,421 KRW, and for corporate cards, it rose 10.0% to 136,280 KRW.

By industry, wholesale and retail trade reached 150 trillion KRW, up 16.6%, driven by increased non-face-to-face and online purchases, retail sectors such as department stores, and vehicle fuel sales. The transportation industry grew 87.5% to 3.61 trillion KRW due to increased travel and expanded air traffic. Accommodation and food services also rose 37.2% to 37.82 trillion KRW. Additionally, business facility management and business support services increased by 39.4%, and arts, sports, and leisure-related services grew by 28.8%.

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