On Dec. 17, SK FSC,SK FSS held a meeting with card companies.
SK FSC, SK FSS said SK FSC has held a meeting with card firms, to discuss card fee reform measures in 2025, industrial development direction, liquidity/soundness status.
Follows SK FSS Aug. 2024 held taskforce meeting to improve card fees, see #223406.
Card Fee Reform Measures
According to 2024 eligible cost calculation results, the amount of card fee reductions for small and medium-sized card member merchants amounts to KRW 300bn per year.
Preferential fee rates will be distributed evenly to 3.05mn small and medium-sized merchants, 40% of KRW 300bn to merchants with annual sales of KRW 300mn or less.
43% to those with annual sales of KRW 300mn-1bn, 17% to those with KRW 1bn-3bn.
As a result, credit card fee rates will be lowered by 0.1ppt for those with annual sales of KRW 1bn or less and by 0.05ppt for those with annual sales of KRW 1-3bn; debit card fee rate will be lowered by 0.1ppt for all small and medium-sized merchants.
For general merchants with annual sales of less than KRW 100bn whose card fee rate increases along with a rise in eligible costs, the fee rate will be frozen for three years.
It was decided to recalculate eligible costs every 6 years instead of every 3 years, but if necessary, eligible costs may be recalculated after reviewing every 3 years.
A committee will be formed to review the necessity of recalculating eligible costs.
The adjustment of preferential fee rates will be applied from Feb. 14, 2025.
Industrial Development Directions
SK FSC will revamp the regulatory system centered on physical cards/face-to-face transactions, to fit the digital/AI era with widespread non-face-to-face transactions.
Support card firms in bolstering their productive financial role for small merchants/sole proprietors in addition to services for card members like credit sales and card loans.
Improve payment stability by implementing regulatory measures on sales practices of secondary and lower payment gateways (PGs) and subsidiary business operators.
Liquidity/Soundness
SK FSC stressed the importance of market trust in the industry's liquidity/soundness, requested card firms to secure preemptive, sufficient liquidity, improve soundness.
SK FSS urged card firms to manage their soundness amid rising card loan handling, while ensuring that the supply of funds to vulnerable borrowers is not reduced.
In addition, SK FSS emphasized the need to thoroughly inspect their IT system.