Card Approval Amount Surpasses 300 Trillion Won in Q4 Last Year... Up 6.2% YoY

Credit and debit card approval amounts surpassed 300 trillion won in the fourth quarter of last year.

According to the Credit Finance Association on the 31st, the card approval amount in the fourth quarter of last year was 300.2 trillion won, a 6.2% increase compared to the same period the previous year (282.5 trillion won). Looking at the quarterly card approval amount growth rates for last year based on the same criteria, it decreased from 11.5% in the first quarter to 4.1% in the second quarter and 2.4% in the third quarter, before rebounding in the fourth quarter. By consumer type, individual card approval amounts in the fourth quarter of last year reached 246.7 trillion won, up 5.8% year-on-year, while corporate card approval amounts increased by 8.2% to 53.6 trillion won.

Card approval amount and number of card approvals in the fourth quarter of last year.
[Photo by Korea Credit Finance Association]

The number of card approvals in the fourth quarter of last year was 7.05 billion, a 6.7% increase compared to 6.61 billion in the same period the previous year. The growth rate of card approval counts also slowed from 11.9% in the first quarter of last year to 6.9% in the second quarter and 6% in the third quarter, before rebounding this time. Jang Myung-hyun, a senior researcher at the Credit Finance Association, analyzed, "Consumer sentiment is showing a favorable trend due to the slowdown in inflation," adding, "The continued growth of online transactions also had a positive impact on card approval performance."

In fact, the Consumer Confidence Index (CCSI), which was 88.6 in the fourth quarter of 2022, rose to 99.7 in December last year. The Consumer Confidence Index is a sentiment indicator calculated using six major indices from the Consumer Sentiment Index (CSI). Using the long-term average as the baseline value of 100, a value above 100 indicates optimism, while below 100 indicates pessimism. Online shopping transaction amounts in October-November last year reached 40.888 trillion won, a 12.3% increase compared to 36.41 trillion won in the same period the previous year. Among online shopping, purchases of various vouchers and gift certificates increased due to the delivery of fresh food and the activation of O2O (Online to Offline Service) services.

In the fourth quarter of last year, among the eight industries classified under the Korean Standard Industrial Classification (major categories) by Statistics Korea that are highly related to consumer lifestyles, the card approval amount for business facility management and business support services showed the highest growth rate, increasing by 20.9% year-on-year. Card approval amounts increased in all industries, including transportation (20.1%), education services (11.1%), and health and social welfare services (8.2%).

Meanwhile, the average approval amount per card in the fourth quarter of last year was 42,568 won, a 0.4% decrease compared to the same period the previous year. Credit cards increased by 0.5% to 54,355 won, but debit cards decreased by 0.9% to 24,007 won.