Worried About Using Cards Amid High Inflation... Spending by 1020 Generation Plummets

Woori Financial Research Institute, Statistics Korea Big Data Analysis
Weekly Spending of People in Their 20s Down 9% Year-on-Year
Spending of People in Their 50s, 60s, and 70s Actually Increased

Recent data shows a sharp decline in credit card usage among those aged 20 and under. As high inflation and economic downturn continue, it is analyzed that individuals aged 20 and under, whose income is unstable, are tightening their wallets.

On the 2nd, Woori Financial Management Research Institute analyzed data from Statistics Korea's 'Big Data Utilization' and found that domestic credit card spending from the 3rd to the 9th of last month increased by only 0.8% compared to the previous year. The weekly growth rate of credit card usage has been on a downward trend since January 2021, when related statistics began to be compiled.

The growth rate, which exceeded 10% in April-May 2021, remained around 5% until February this year following last year. However, it gradually declined and turned negative for the first time in April. Since then, it has failed to rebound and has hovered around 0-1%.

Looking at the data by age group, the decline among those aged 20 and under was notably pronounced. Credit card spending for this group has been decreasing year-over-year since March last year, with the growth rate fluctuating between -9% and -10% recently.

From the 3rd to the 9th of last month, credit card usage among those aged 20 and under decreased by 9.0% compared to the same period last year. During the same period, those in their 30s (-0.3%) and 40s (-1.4%) also recorded negative growth, but the decline was not as significant as that of the 20 and under group.

On the other hand, relatively older age groups such as those in their 50s (2.0%), 60s (7.1%), and 70 and above (15.3%) saw an increase in spending compared to the previous year.

The Woori Financial Management Research Institute stated, “It appears that those aged 20 and under, whose income flow is unstable, are reducing consumption more than other age groups.”