Credit card spending by South Koreans is expected to grow 8.6 percent this year as the economic recovery boosts households' income levels, a report showed Wednesday.
Spending via credit cards is forecast to reach 512.9 trillion won (US$426.7 billion) in 2010, compared with 472.3 trillion won the previous year, according to the report by the Hana Institute of Finance.
The report said using plastic money is estimated to have expanded 10.6 percent on-year to 252.4 trillion won in the first half.
"As the economy has been emerging from the economic downturn, consumer spending is improving, leading to a rising number of credit purchases of
cars," it noted.
But the growth is expected to slow to 6.8 percent in the second half as the recovery will likely weaken due its earlier sharp expansion.
The report comes as the Korean economy, Asia's fourth-largest, has been on the solid recovery track due to robust exports and improving domestic
demand.
The government predicts the economy will expand 5.8 percent this year.
In 2009, card spending grew a mere 1.7 percent, hit by the slumping economy after expanding 12.1 percent from the previous year, the report said.