Seoul: South Koreans' overseas card spending witnessed its largest decline in three years during the first quarter, primarily due to a reduction in overseas direct purchases, as revealed by recent data.
According to Yonhap News Agency, the total amount spent overseas by South Koreans using credit and debit cards reached US$5.35 billion between January and March, marking a 5.2 percent drop from the previous quarter's $5.64 billion. This represents the most significant quarter-on-quarter decrease since the first quarter of 2022.
The notable decline was largely attributed to a 15.3 percent decrease in overseas direct purchases made via credit cards, which totaled $1.35 billion. A Bank of Korea (BOK) official explained, "Direct purchases from overseas tend to increase in the fourth quarter due to such major discount events as Black Friday. The first-quarter decline was mainly attributable to a seasonal factor."
Meanwhile, the number of outbound travelers increased by 4.1 percent from the previous quarter, reaching 7.79 million in the first quarter. Despite the decline in spending compared to the last quarter, a year-on-year comparison shows a 3.1 percent increase in overseas card spending. However, this was the lowest growth rate since the first quarter of 2021, a period heavily impacted by the COVID-19 pandemic.