Domestic credit card purchases, excluding corporate and overseas card purchases and cash advances, totaled KRW192.5 trillion in 2005, up KRW28.0 trillion or 17.1% from a year earlier. In particular, fourth quarter credit card purchases, boosted by seasonal year-end spending, jumped 11.4% from the third-quarter total of KRW48.2 trillion to KRW53.7 trillion, the highest level since 2003.

The increase in credit card purchases was led by economy-sensitive and household purchases of goods and services. Income effect from the surge in the stock market as well as improved economic outlook most likely contributed to the continued growth of credit card purchases in 2005.

Credit card data also suggest that most consumers are now increasingly using credit cards primarily for purchases of goods and services, not for cash advances. Since 2003, the proportion of credit card purchases has continuously risen and reached 70.3% of the total credit card use in the third quarter of 2005.

The increase in credit card purchase was fairly uniformly spread across the board with notable jumps for restaurants and large discount retailers. Of the 176 credit card merchants classified by the Credit Finance Association, 141 merchant groups saw increased credit card purchases in 2005.

* Please refer to the attached PDF for details.