Choi Jong-ku, chairman of the Financial Services Commission, made the remark at a meeting with top executives of credit card companies as the industry has been under pressure over competition with online payment services and a cut in credit card processing fees for small merchants.
Choi said credit card firms "need to revamp their high-cost system by avoiding excessive marketing activities and making their payment process more efficient," according to a statement released by the FSC.
|Choi Jong-ku, chairman of the Financial Services Commission. (Yonhap)|
FSC chief also said that the credit card industry needs to pay attention to its "social role and contributions it needs to make."
South Korea cut credit card processing fees for small merchants from July 31, in the latest move to push forward pro-consumer regulations against commission fees charged by financial service providers.
The cut would affect about 267,000 small merchants and cut the revenue of credit card firms by about 350 billion won ($311.6 million) a year, according to the FSC. (Yonhap)