Q3 Card Approvals Rise 3.4% YoY to 338.9 Trillion Won as Growth Slows from First Half

Credit Finance Research Institute's "Analysis of Card Approval Performance"

Credit card approval amounts in the third quarter increased 3.4% year-on-year. The increase was smaller than in the first half of the year amid high inflation and weakened consumer sentiment.

A discount event supported by the Ministry of Agriculture, Food and Rural Affairs at E-Mart Yongsan in Yongsan-gu, Seoul. Korea Agro-Fisheries & Food Trade Corporation (aT)

According to the Credit Finance Research Institute on October 30, total card approval amounts and the number of approvals in the third quarter stood at 338.9 trillion won and 7.94 billion, respectively, up 3.4% and 1.3% year-on-year.

The institute said that although growth in gross domestic income (GDI) and strong earnings at domestic companies continued, consumer sentiment was slightly weaker than a year earlier, while relatively high inflation persisted.

The institute analyzed that the year-on-year growth in card approval amounts eased compared with the first half of the year, due to the base effect of consumer coupon payments in the same quarter last year, fewer business days as a result of more public holidays, the burden of prices and interest rates, and sluggish sales of some durable goods, including automobiles.

Total card approval amounts grew 7.2% in the first quarter and 7.6% in the second quarter of this year.

Personal card approval amounts rose 3.7% to 275.5 trillion won, while the number of approvals increased 1.5% to 7.53 billion.

Corporate card approval amounts increased 2.3% to 63.6 trillion won, while the number of approvals fell 0.9% to 410 million.

Credit card approval amounts rose 4.1% to 264.9 trillion won, while debit card approval amounts increased 2.7% to 69.9 trillion won.

The average approval amount per transaction was 42,684 won, up 2.1% year-on-year and 0.9% from the previous quarter.

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