The Chosun Ilbo compared the BC Card spending records of Koreans according to age groups during the fourth quarters of 2007 and 2008. Data showed BC Card usage by people in their 20s during the fourth quarter of 2008 rose 48.2 percent compared to the year-ago period and 14.4 percent for those in their 30s. By comparison, BC Card usage by those in their 40s rose just 7 percent over the same period and only 4.8 percent for those in their 50s.
The rise in the amount of credit card spending during the fourth quarter of last year by Koreans in their 20s and 30s was similar to the level seen during the same period two years ago, while the rise in spending by Koreans in their 40s and 50s shrank by almost half.
∵ Spending Big
BC Card users in their 20s, many of whom are university students or starting their first jobs, spent W1.987 trillion (US$1=W1,515) during the fourth quarter of last year, the smallest amount among different age groups. But their spending rose by double-digit figures across all industries. The amount of money they spent on internet commerce increased 53.1 percent. The figure also rose steeply in spending on gasoline (43.9 percent), leisure (63.3 percent), dining out (63.1 percent), discount stores (49.9 percent) and cosmetics 45.9 percent).
Koreans in their 20s were also big spenders when it came to mobile phone usage. During the fourth quarter of last year, they spent W95.6 billion on communications fees. Park Jae-hang, a director at Cheil Worldwide, says Koreans in their 20s and 30s were born when Korea’s gross national income surpassed US$10,000 and have mostly replaced energetic recreational activities with shopping and other money-spending activities, so it’s not easy for them to give up their spending habits. One positive aspect, Park says, is their steady spending slows the speed of decline in domestic consumption.
∵ Cutting Back on Spending
Card users in their 40s and 50s cut back on spending in all areas. Their credit card spending in department stores and duty free shops, on clothes, air fares, and electronics shrank compared to the same period of 2007. Their spending, particularly at department stores, declined almost 10 percent. But credit card purchases of health foods by Koreans in this age group rose around 35 percent during the fourth quarter of 2008. Lee Hyun-shik, a deputy manager at BC Card, said the trend appears to reflect a greater interest in health, especially during tough economic times.
