South Korean Small Businesses to Receive Urgent ₩65.15 Billion Credit Card Fee Refund
Seoul, South Korea – August 13, 2025 – In a move poised to provide immediate financial relief to millions of small and medium-sized enterprises (SMEs), the South Korean Financial Services Commission (FSC) today announced a sweeping ₩65.15 billion (approximately $48.8 million USD) refund of credit card fees. This breaking news impacts over 3.36 million merchants, including 1.86 million utilizing sub-payment agencies and 160,000 taxi operators, offering a much-needed boost to the nation’s economic backbone.
Who is Eligible for the Credit Card Fee Refund?
The refund specifically targets businesses that became new credit card merchants in the first half of 2025. Initially charged the standard merchant commission rate, these businesses – confirmed to be SMEs – will now receive a retroactive adjustment to the preferential commission rate already in place. Approximately 161,000 merchants fall into this category. Even businesses that closed during the first half of the year are eligible, ensuring a broad reach of this financial assistance.
How Much Will Businesses Receive?
While the total refund amount is ₩65.15 billion, individual refunds are estimated to average around ₩400,000 per merchant. This substantial sum can be a lifeline for many SMEs grappling with rising operational costs and economic uncertainties. The FSC emphasized that the preferential commission rate will remain in effect through the second half of 2025, providing continued support.
How to Claim Your Refund: A Step-by-Step Guide
Card companies will automatically deposit the fee difference directly into merchants’ card payment accounts before August 26th. To verify the refund details – including daily and case-specific information – merchants can visit their respective card company’s website. For a consolidated view, the Credit Finance Association’s ‘Integrated Inquiry System’ offers a convenient platform to track the refund process. This streamlined approach aims to ensure a swift and transparent distribution of funds.
The Bigger Picture: South Korea’s Ongoing Effort to Support SMEs
This refund isn’t an isolated event. It’s part of a larger, ongoing effort by the South Korean government to foster a more supportive environment for SMEs, which are crucial drivers of innovation and employment. For years, high credit card fees have been a significant burden for small businesses, impacting profitability and hindering growth. Recent reforms, including the setting of new commission rates, demonstrate a commitment to addressing these challenges. This move aligns with global trends towards fairer merchant fees, as seen in similar initiatives in the European Union and Australia.
The long-term implications of these reforms extend beyond immediate financial relief. By reducing operating costs, the FSC hopes to encourage SMEs to invest in expansion, hire more employees, and contribute to overall economic growth. Furthermore, the increased transparency surrounding commission rates empowers merchants to negotiate better terms with card companies and make informed financial decisions. Understanding these changes is vital for any business operating in – or considering entering – the South Korean market. For those interested in learning more about SEO strategies to boost online visibility, archyde.com offers a range of resources and expert insights.
This proactive approach by the FSC underscores the importance of adapting to the evolving needs of the business community. As the digital payment landscape continues to transform, ongoing dialogue and collaboration between regulators, financial institutions, and merchants will be essential to ensure a fair and sustainable ecosystem for all. Stay tuned to archyde.com for further updates on this developing story and in-depth analysis of its impact on the South Korean economy.
