Korean card issuers and retailers lock horns

South Korea
Uncategorized
e-Banking, Transaction Banking

(3 September 2004 – South Korea) The stoush currently taking place in South Korea between credit card issuers and retailers has heated up following one issuer’s decision to raise commission fees.South Korea’s largest discount store E-Mart banned usage of BC Card credit cards in its stores after the issuer increased commission fees.

BC Card raised its fee from 1.5 percent to 2.35 percent at E-Mart branches after failing to reach an agreement with the retailer which has come out strongly against fee hikes.

Credit card companies have been doing it tough in South Korea with consumers cutting back on spending and credit.

As a result, card issuers such as KB Card, Samsung, and LG Card have made it known to telcos and discount chain stores that they intend raising fees to more than two percent.

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