] Kim Duk-soo, new CEO of the Credit Finance Association of Korea, said it plans to sue Visa Card if the global payment network company pushes ahead with its planned fee hike for overseas purchases.
“Recently, Visa notified local card firms that it will raise fees by 0.1 percent for overseas payments. But when taking inflation rate into consideration, the amount is unreasonable,” Kim said at the press conference last week to mark the 100th day since he took the top job at Crefia, the association comprised of 42 firms in credit card, leasing and venture capital sectors.
“The unfair contract between Visa and local card firms that was formed 20 years ago still holds,” he said. “Unless Visa comes up with satisfactory solution, we plan to complain to the Fair Trade Commission.”
In May, Visa notified local card firms that it will raise the fees from the existing 1.0 percent to 1.1 percent starting next year in January. Local card firms, angered by Visa’s unilateral decision that only applied in South Korea, sent a joint letter to the company and also visited the US headquarters to protest, but no change to the decision has been made as yet.
By Ahn Sung-mi (email@example.com