By Lee Kyung-min
A coalition of union workers at credit card companies vowed to continue their all-out protest against the government's plan to lower transaction fees up to 1 trillion won ($875 million).
They claimed blindly pushing the repeatedly failed measure only escalates the conflict between the parties involved.
Three groups comprised of workers in the financial services sector and the nation's eight credit card issuers said the fact that no tangible improvement has been observed thus far, proves the government's “incompetence.”
“The government has lowered the transaction fee nine times over the past few years, a result of administrative railroading that only exacerbated the controversy,” the group said in front of headquarters of the ruling Democratic Party of Korea (DPK) on Yeouido, Oct. 12. They submitted a letter of protest to the DPK Chairman Lee Hae-chan shortly after the protest.
The added nothing has changed for the struggling small- and medium-sized enterprises (SMEs), which they pinpointed as the core reason why the government should revisit the plan as soon as possible.
“The government's repeated policy implementation over the course of nine fee cuts only shows how wrong and flawed the approach has been,” they added.
A fee cut without serious consideration to the size of each business, they added, will only benefit a limited number of large conglomerate-affiliated franchises.
“Workers at the card firms are in constant fear of sudden layoffs, and the government's inept policy that fails to address the issue in an equitable manner only adds to our frustration,” they said.
The growing sense of anxiety came after Hyundai Card accepted resignation letters from a handful of senior executives Nov. 8.
While the card firm said the “voluntary” submission of the letters was irrelevant to the looming fee cuts, it was largely considered the beginning of massive layoffs stemming from deteriorating bottom lines among the once lucrative firms.
Meanwhile, a similar collective action is expected from a collation of about 20 SMEs today.
The group, seeking to abolish what they call a payment system “at the height of unfairness,” will hold a street rally in Gwanghwamun, Seoul.
Over 100 vehicles will be mobilized with banners of messages demanding the prompt reduction of interchange fees.
“The card firms' strategic move claiming their business will somehow go bankrupt is simply a far-fetched scenario and they know it,” the group said.
“Their operating profit far surpasses 2 trillion won a year even after lavish promotional activities. The card firms are deflecting responsibility, thereby leaving us, the underdogs, to continue to suffer.”
Financial Services Commission (FSC) Chairman Choi Jong-ku said in October that efforts are underway to revise the current method to charge the fee, adding a more proper way of fee-setting measures will be unveiled in November.