Visa Card to Raise Credit Card Fees in South Korea

According to industry sources, Visa Card is planning to raise six types of fees, including data processing, international acquiring and foreign transaction fees, in South Korea by up to 100% in some fee on October 1.

This plan has been determined without any prior discussion with South Korean credit card companies. Under the circumstances, the credit card companies are complaining that Visa Card is taking advantage of its overwhelmingly dominant position in the South Korean market and the lack of South Korean payment brands comparable to it.

At present, Visa Card’s share in the global payment market is 56% or so and its share in the South Korean market is estimated to be close to it. 

On the contrary, Visa Card’s influence is weaker in China and Japan. In the Chinese market, payment by visa card was possible only with Union Pay until recently. In Japan, the domestic brand of JCB is curbing an increase in Visa Card’s market share.

“The fee adjustment is to be applied to all Asia-Pacific countries and the fees are to be raised in the future in Japan and China as well,” Visa Card explained with regard to the fee issue.