April 23, 2024

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[THE INVESTOR] Credit card spending has increased despite concerns that the new anti-graft act will dampen spending.

Industry data showed on Nov. 25 that despite concerns that the Improper Solicitation and Graft Act would lower spending, corporate credit card spending came to 15.21 trillion won (US$12.88 billion), up 26.5 percent on-year. 

Critics of the new anti-graft act, which took effect on Sept. 28, had claimed that the act would dampen spending and forecast heavy impact on a range of industries.

However, corporate credit card spending at golf clubs and bars have fallen since the act took effect.

The data showed that corporate credit card spending at golf clubs came to 172 billion won, down 7.9 percent, while that at bars fell 15.1 percent from a year ago to come in at 85.3 billion won.

Individuals’ credit card spending at golf clubs, however, increased 7 percent to come in 314.4 billion.

Spending on credit cards held by private consumers, excluding taxes and utility bills, rose 7.8 percent from a year ago to come in at 45.7 trillion won.

By Choi He-suk (cheesuk@heraldcorp.com)