Statistics Korea revealed Tuesday that it’s developing what it calls a ‘quick-time consumption index’ based on civilian credit card approval information provided by the Credit Finance Association (CFA).
The new index will use big data related to credit card approval information from eight domestic credit card companies, and is expected to launch in October.
The CFA-provided information consists of approved credit card transactions categorized by date, 17 cities and provinces, and 178 business categories. To further broaden the index, Statistics Korea will also use additional credit card approval information from more specific types of businesses such as department stores and supermarkets.
Statistics Korea expects the new index to allow for quicker observation of the ‘production index for the service industry’ and ‘retail sales index’, with an improvement of approximately three weeks, which in turn will permit quicker responses to economic changes.
“The total approved credit card transactions take up 76 percent of all consumption and sales, which will make this new index quite reliable,” said an official from Statistics Korea.