Decline in card spending in South Korea in 2023 due to decrease in private spending: Report

Seoul, March 25 (IANS) – Daily card spending in South Korea saw a 6.2 per cent increase last year, according to data from the Bank of Korea. However, the growth rate slowed down compared to the previous year due to a decline in domestic demand.

Credit and debit card holders spent an average of 3.3 trillion won ($2.46 billion) per day in 2023, up from 3.1 trillion won in the previous year. Credit card spending specifically rose by 6.9 per cent to a daily average of 2.62 trillion won, showing a slower growth rate compared to the previous year.

South Korea’s real gross domestic product (GDP) increased by 1.4 per cent in 2023, marking a slowdown from the 2.6 per cent growth in 2022 and 4.3 per cent growth in 2021. This was the lowest growth rate since a 0.7 per cent contraction in 2020 during the COVID-19 pandemic. Private spending also saw a deceleration, gaining 5.3 per cent last year compared to an 8.7 per cent increase in the previous year.

The data reflects a mixed economic outlook for South Korea, with card spending showing an increase but at a slower pace, while GDP growth experienced a significant slowdown in 2023. As the country navigates through economic challenges, analysts will be closely monitoring key indicators to assess the trajectory of its recovery in the coming months.