Despite Martial Law Fallout, Q4 Card Spending Up 3.2% YoY... "Increase in Tourism Expenditure"

Transportation Sector Up 5.3%: "Increase in Overseas Travel"
Corporate Card Approvals Up 5.8%: "Improved Business Performance"

Despite the aftermath of the martial law situation, card usage in the fourth quarter of last year increased by 3.2% compared to the same period the previous year, driven by increased tourism spending. The transportation sector showed a relatively high growth rate due to the rise in overseas travel. Corporate card approval amounts grew at a higher rate than personal cards as corporate business performance improved in the fourth quarter compared to the third quarter.

Travelers visiting Incheon International Airport Terminal 1 on the 24th are lining up to move to the boarding concourse. Photo by Kang Jin-hyung

According to the "2024 Fourth Quarter Card Approval Performance Analysis" released by the Korea Credit Finance Association on the 4th, the card approval amount in the fourth quarter of last year was 309.8 trillion won, and the number of approvals was 7.3 billion, increasing by 3.2% and 3.6% respectively compared to the same period last year.

The association explained, "Although consumer sentiment was dampened due to increased domestic and international uncertainties, card approval performance showed a moderate upward trend due to increased spending in tourism and related industries, as well as a recovery in domestic automobile sales amid continued price stabilization."

By industry, the transportation sector saw a high growth rate of 5.3%, influenced by increased overseas travel and greater use of transportation means such as airlines and railways. The business facility management and business support services sector also increased by 4.0%, driven by improved performance in the travel agency industry. The accommodation and food service sector rose by 1.5% compared to the same period last year.

By card type, personal card approval amounts and the number of approvals were 253.2 trillion won and 6.89 billion, respectively, marking increases of 2.6% and 3.7% compared to the previous year. Corporate card approval amounts and the number of approvals were 56.7 trillion won and 410 million, respectively, increasing by 5.8% and 1.6% compared to the previous year.

The association stated, "The higher growth rate compared to personal cards is estimated to be due to increased tax and utility payments following improvements in corporate business performance."

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