The head of the financial watchdog on Tuesday called for credit card firms to focus on their risk management processes this year, as global trade wars and market volatility further weigh on the nation’s economy.
Yoon Suk-heun, governor of the Financial Supervisory Service, made the remarks at a meeting with chief executives of credit card firms earlier in the day.
“This year will be the most difficult year amid a global economic slowdown, trade pressures and household debt,” Yoon told the meeting.
Yoon also called for credit card firms to improve their systems for managing liquidity risks.
Credit card firms have been under pressure from a cut in commission fees for small merchants as the government seeks to ease financial burdens on self-employed business owners.
Starting next month, credit-card processing fees for small merchants with an annual revenue of between 500 million won ($442,478) and 1 billion won will be lowered by 0.65 percentage point to 1.4 percent per transaction.
For merchants with an average revenue of between 1 billion won and 3 billion won, credit-card processing fees will be cut by 0.61 percentage point to 1.6 percent per transaction. (Yonhap)