Credit Card Debt in 1st Quarter Recorded over 100 Trillion Won

The total amount of cash reserve or credit card loan from January to March recorded over 100 trillion won.

The Financial Supervisory Commission revealed that “the customers of 25 credit companies have loaned 100 trillion 114.4 billion won by cash reserve or credit card loan” which is 62 percent increased from the credit loan during the same period of last year, recording the first time credit loan over 100 trillion won in its history.

FSC also announced that the total credit card use including the purchase by credit card in the same period recorded 156 trillion 838.9 billion won, which is 66 trillion won (73.7 percent) increased from the same period last year.

An FSC official said, “purchase by credit card out of the total credit card use was only 37 percent. Although the credit card companies promised to reduce the cash loan down to 50 percent by 2003, they are competing with other by providing gifts for cash loaners.”

SFC also revealed that the total number of cards issued by March this year is 96 million 52 thousands, 52 percent increased from 63.26 million in March last year. The number means that each economically active person (22.29 million) excluding minors and elders over 65 has 4.3 cards.

Seung-Ryun Kim srkim@donga.com