IMGCAP(1)]
Korean credit card issuers have been discussing reducing the consumer charges they levy for credit card cash advances, according to a notification from the Financial Supervisory Commission of Korea. Issuers will have to submit their plans to the commission by the end of this month and enforce the cuts beginning next year, according to the notice. Several credit card companies already have pledged not to impose handling charges for cash advances, according to the Korea Times newspaper. In Korea, card issuers normally levy two charges on cash advances–a handling charge proportionate to the advance amount and an interest rate that depends on the advance amount and the settlement period. The newspaper report indicated that Shinhan Card Co. Ltd., Hana Card Co. Ltd., SC First Bank Ltd. and Industrial Bank of Korea Ltd. already have agreed to the fee reduction. However, CardLine Global was unable to secure verbal confirmation from the issuers or from the commission.
