Credit Card Fee Relief to Reach 95.7% of Korean Merchants This Year (Yonhap)
SEOUL, Aug. 13 (Korea Bizwire) — Starting August 14, nearly 3.07 million credit card merchants in South Korea with annual sales of 3 billion won ($2.18 million) or less will benefit from reduced processing fees, the Financial Services Commission (FSC) announced Wednesday.
The move extends preferential rates to most small businesses, including those designated as outlets for the government’s recently issued “consumer recovery coupons.”
Under the new policy, 95.7 percent of the nation’s 3.21 million credit card merchants will qualify for lower rates. The measure also covers 1.86 million sub-merchants using payment gateways (PG firms) and 166,000 individual and corporate taxi operators.
Eligible merchants will pay fees ranging from 0.4 to 1.45 percent for credit card transactions and 0.15 to 1.15 percent for debit cards, depending on sales volume.
The Credit Finance Association has mailed notifications to merchants, who can also verify rates through the association or their card issuers. Sub-merchants and taxi operators can check through their PG or transport settlement companies.
The FSC will also retroactively apply the reduced rates to around 161,000 newly registered merchants from the first half of 2025 whose revenues qualify them as small or micro-merchants.
These businesses will receive refunds totaling approximately 65.15 billion won, or about 400,000 won each, by September 26. Retroactive benefits will also go to 148,000 newly registered PG sub-merchants and 5,505 taxi operators.
Officials said the measure is intended to ease cost burdens for smaller merchants who have struggled with card processing fees, especially during a period of sluggish domestic demand.
Ashley Song (ashley@koreabizwire.com)
