The FSC plans to cut credit card merchant fee rates by 0.3%p~0.7%p from the end of January 2016 to reflect cost-saving factors in card business. As interest rates continue to remain at low levels, funding cost for credit card companies has decreased since 2012. The ban on VAN operators from providing large merchants with unfair rebate (implemented from July 2015) allows card companies more room for further cuts of VAN and merchant fees. The FSC expects lowering merchant fee rates would save KRW 670 billion for about 2.38 million merchants.

* Please refer to the attached PDF for details.