In total, credit card spending in Korea last year was estimated to be 690 trillion won, while the comparable figure for this year is expected to be 701 trillion won. (image: Kobiz Media / Korea Bizwire)
SEOUL, Jan. 27 (Korea Bizwire) – Koreans make more than half of their payments by credit cards in terms of volume, almost twice as much as Americans.
According to a Bank of Korea report entitled “Koreans’ Usage of Payment Means in 2014 and Their Implications” analyzing payment usage in terms of volume by interviewing 2,500 adults aged over 19, the payment share of credit cards recorded 51 percent, followed by debit cards (20%) and cash (17%).
In total, credit card spending in Korea last year was estimated to be 690 trillion won, while the comparable figure for this year is expected to be 701 trillion won. In 2013, credit card spending reached 680 trillion won after topping the 600 trillion won mark in 2011.
Among other comparable countries, the portion of credit card usage in Canada followed just after Korea with 41 percent, while in the U.S. and Australia the figures were 28 percent and 18 percent respectively. Germany, Austria, Netherlands and France only recorded 7 percent, 5 percent, 4 percent and 3 percent respectively.
Among methods of payment, the usage rate of cash was highest in Austria at 65 percent, followed by Germany (53%), Netherlands (34%), Australia (32%), the U.S. and Canada (23% each), Korea (17%) and France (15%).
The usage rate of debit cards was highest in the Netherlands at 60 percent. Koreans were the most infrequent users of debit cards at only 20 percent.
In terms of transaction numbers, 38 percent of the payments in Korea were conducted in cash, followed by credit cards (34%) and debit cards (18%). However, in comparison to other countries, the use of cash was at the lowest level, while the rate of credit card use was the highest.
Meanwhile, the average amount of cash carried by each Korean stood at 77,000 won in their wallet. By gender, males held an average of 81,000 won, which was 9,000 won more than women. However, the average spending of Korean women reached 56,000 won a day, 13,000 won more than men.
By M. H. Lee (mhlee@koreabizwire.com)
