Credit card spending in South Korea is expected to top 700 trillion won (US$634 billion) this year, but credit issuers' profitability may not improve largely due to a fall in spending by individual cardholders, data showed on Sunday.

Credit card spending in the country last year was estimated at 690 trillion won, and the comparable figure for this year is 701 trillion won, according to the data compiled by KB Financial Group, the country's top banking group.

In 2013, credit card spending reached 680 trillion won after topping the 600 trillion won mark in 2011.

Since the financial crisis in late 1997, the government has encouraged credit card spending as a way of boosting domestic demand.

Most South Koreans use multiple credit cards, which has contributed to greater private spending in the past few years, and their spending with plastic is often regarded as a measurement of private consumption.

The banking group said despite the increased use, local credit card firms may not see their profitability improve this year as spending and use of cash advance services by individual cardholders remains flat or declines. (Yonhap)