By Lee Hyo-sik
Staff Reporter
South Koreans' credit card spending rose to an all-time high last month as people made more goods and service purchases with plastic on improved consumer sentiment ahead of the year-end shopping season.
Also, salaried workers and the self-employed used their credit cards more to deduct from taxable income this month.
According to the Bank of Korea (BOK) Wednesday, local consumers bought goods and services worth 22.8 trillion won using credit cards in November, up 16.6 percent from a year earlier. This is the highest monthly figure since the central bank began compiling data in 2003.
``Despite high oil prices and other unfavorable external business conditions, many Koreans are spending more on earnings from equity investments at home and abroad amid bullish market runs. Also, individuals tend to make purchases in November with plastic to deduct more card expenditure from taxable income, pushing up the monthly card consumption to a record high,'' a BOK official said.
He expects the spending to surpass 250 trillion won this year for the first time as consumers usually spend most in December because of Christmas and the year-end shopping seasons. Cumulative card spending reached 229.7 trillion won in the first 11 months to November.
Last year, Koreans purchased goods and services worth 221 trillion won with plastic, up from 192 trillion won in 2005, 164 trillion won in 2004 and 162 trillion won in 2003.