The financial authorities are delaying the announcement of the card fee reform plan as card workers are calling for a halt to the card fee cut and announcing a strike.
According to the Financial Services Commission and the credit card industry on the 1st, a plan to revise card fees, including whether to cut card fees, is expected to be made around the middle of this month. An official from the FSC said, “The deadline for the announcement of the original card fee reform plan is by the end of the year.” “He said.
At first, it was predicted that the card fee cut would be reduced, but the voices of card workers against the fee cut grew and the card industry executives also complained of difficulties, so the decision was delayed. The official said, “Recently, credit card companies are considering various changes, such as the fact that the proportion of profits from other finance such as loans is increasing rather than profits from loans.”
The credit card companies union council, made up of seven credit card unions, held a strike resolution meeting in front of the government building in Seoul last month, and announced that if the authorities enforced a reduction in card fees, they would stop computing and consider a strike that would make it impossible to pay by card. The credit card companies union council was established in June by the office finance union Lotte Card Branch, Shinhan Card Branch, Hana Foreign Exchange Card Branch, Hyundai Card Branch, BC Card Branch, KB Kookmin Card Branch and the Woori Card Branch of the financial union.
The current card fee is 1.97~2.04% based on general merchants. Compared to the 4.5% in 2007, when a claim for a card fee cut was raised, this is half of the level. In addition, 2,786,000 (92%) of franchisees receive a preferential fee of 0.8 to 1.6%, which is half of the fee. The union and industry argue that if the number of workers such as card solicitors decreases due to successive card fee cuts, the reduction in labor costs is reflected in the process of recalculating eligible expenses, which recalculates the fee rate, and the vicious cycle of lowering the fee is repeated.
In the midst of this, the situation became more complicated when the Federation of Small Businesses released a survey result stating that 85.4% of small business owners said they felt burdened by credit card fees.
As the announcement of the card fee reform plan has been delayed, the credit card company union council is also paying attention to the exercise of the right to collective action. Jung Jong-woo, chairman of the credit card company union council, said, “We decided to hold a meeting on the same day that the financial authorities announced the card fee reform plan and decide in detail the method and level of industrial action. We are working on persuasion by passing it on to the organization,” he said.