Card Union "Oppose Fee Reduction... Qualified Cost Recalculation System Must Be Abolished"

Resolution Rally for General Strike on the 15th
Big Tech Equity Issues Also Highlighted

[Asia Economy Reporter Ki Ha-young] Ahead of the announcement of the card fee reform plan for the first time in three years at the end of this month, the labor unions of card companies have opposed further reductions in card fees and urged the abolition of the re-evaluation of eligible costs. They pointed out that the system, which has already lost its effectiveness, only benefits big tech companies.

The Card Company Labor Union Council, the National Office and Financial Services Labor Union, and the National Financial Industry Labor Union held a "General Strike Resolution Rally of Card Company Workers" on the 15th in front of the Government Seoul Office in Jongno-gu, Seoul, opposing further reductions in card fees and calling for the abolition of the re-evaluation of eligible costs.

They argued, "Over the past 12 years, the card merchant fees have been reduced 13 times under the pretext of preferential policies for small business owners, and the re-evaluation system of eligible costs is an example of populist pledges," adding, "The card industry has tightened its belt to survive, but this is reflected back into costs, creating room for fee reductions three years later, repeating an absurd situation that strangles card industry workers."

The card fee rate has been re-evaluated every three years since the revision of the Specialized Credit Finance Business Act in 2012. It is determined by reviewing eligible costs calculated based on cost analysis including card companies' funding costs, risk management costs, general administrative costs, VAN fees, and marketing expenses. The fee rate set this year applies from 2022 to 2024.

Du Seong-hak, Vice Chairman of the Office and Financial Labor Union, said, "Politicians are not taking action because they can only gain votes by keeping the eligible cost re-evaluation system in the Specialized Credit Finance Business Act," and criticized, "Maintaining the eligible cost system under the Act is nothing but a political move to secure votes."

They also raised issues of fairness regarding big tech companies. Big tech companies set payment fees autonomously without any regulation, freely change additional services and benefits, and dominate the market with aggressive marketing such as offering up to 10% rewards, thereby absorbing the customer base of the card industry.

Kim Jun-young, Head of the Credit and Loan Industry Headquarters of the Office and Financial Labor Union, said, "Both disaster relief funds and mutual consumption support funds utilized the infrastructure and data of card companies," adding, "We worked for government quarantine and revitalization of the national economy, but all we got in return was pressure to reduce card fees."