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.

Yanolja, Competitor Fined for Unfair Coupon Advertising Practices

Seoul, South Korea – South Korea’s Fair Trade Commission (FTC) has issued penalties against online travel platforms Yanolja and a competitor for deceptive advertising practices involving discount coupons. The FTC resolute the companies engaged in unfair transactions that financially harmed businesses advertising on their platforms.

The core of the issue revolves around high-end advertising packages – including “My Somatic Coupon Advertisement,” “TOP Recommendation,” and “Popular Recommended Package” – sold by Yanolja and its rival. These packages bundled advertising costs with the issuance of discount coupons intended for consumers. Companies purchasing these ad slots were charged a meaningful premium, ranging from 10 to 3 million won per month, with 10-25% of that cost allocated to the coupons.

However, the FTC found a critical flaw in the system: unused coupons were unilaterally extinguished by the platforms at the end of the advertising contract period – often after just one day – with no refunds or options for carryover. This meant businesses effectively lost the value of the unused coupons, despite having already factored the cost into their advertising spend.”This practice abused the platforms’ superior bargaining position and placed an unfair disadvantage on the advertising companies,” stated FTC Head Park Chung-woong. “We are committed to fostering a fair online ecosystem and will take decisive action against violations of fair trade laws.”

The Broader Implications: A Growing Trend of Platform accountability

This case highlights a growing global trend of increased scrutiny over the advertising practices of dominant online platforms. While discount coupons are a common marketing tool, the lack of transparency and the automatic forfeiture of unused value raise serious concerns about fair competition and consumer protection.

Evergreen Insights for Businesses:

Scrutinize Advertising Contracts: Businesses should carefully review the terms and conditions of online advertising agreements, paying close attention to coupon redemption policies and potential losses from unused offers.
Demand Transparency: Request detailed reporting on coupon usage and redemption rates to assess the effectiveness of advertising campaigns.
Negotiate Favorable Terms: Attempt to negotiate terms that allow for coupon carryover or refunds for unused value.
Diversify Marketing Strategies: Avoid over-reliance on a single platform and explore a range of marketing channels to mitigate risk.

The FTC’s action sends a clear message to online platforms: transparency and fairness in advertising practices are paramount. This ruling is expected to prompt a re-evaluation of coupon-based advertising models across the industry and empower businesses to demand more equitable terms.

What specific deceptive marketing tactics did the KFTC identify Yanolja as employing, and how did these practices mislead consumers?

Yanolja Fined 1.5 Billion for Transactional Abuses: Key Practices Cited in Penalty Announcement

The Penalty & Its Scale

South Korean accommodation platform Yanolja has been slapped with a significant 1.5 billion won (approximately $1.1 million USD) fine by the korea Fair Trade Commission (KFTC) for a series of deceptive practices related to transaction manipulation and misleading advertising. This penalty underscores a growing regulatory scrutiny of online travel agencies (otas) and their duty to ensure fair and obvious dealings with both consumers and business partners – specifically, lodging providers. The KFTC’s decision, announced today, August 12, 2025, marks one of the largest fines levied against a major OTA in South Korea. This case highlights the importance of OTA compliance and the potential consequences of violating fair trade laws.

Core Abusive Practices identified by the KFTC

The KFTC examination revealed several key areas where Yanolja engaged in practices deemed anti-competitive and misleading. These include:

False Discount Claims: Yanolja artificially inflated original prices to create the illusion of larger discounts. The KFTC found instances where prices were raised shortly before a “discount” was applied, meaning consumers weren’t actually receiving a genuine price reduction. This tactic falls under deceptive marketing practices.

Manipulated Rankings: The platform prioritized listings based on commission payments rather than genuine customer reviews or quality. Lodging providers who paid higher commissions were given preferential placement in search results, disadvantaging those who didn’t. This impacts hotel ranking algorithms and consumer trust.

Unfair Contract Terms: Yanolja imposed unfair contract terms on lodging providers, including clauses that restricted their ability to offer lower prices on other platforms or directly to customers. This limits price competition within the accommodation market.

Misleading “Best Price Guarantee”: The KFTC determined that yanolja’s “Best Price Guarantee” was frequently enough misleading, as the conditions for claiming the guarantee were overly restrictive and difficult to meet. This is a clear case of false advertising.

Impact on Lodging providers & the Accommodation Market

These practices had a significant negative impact on lodging providers, especially smaller businesses. By manipulating rankings and imposing restrictive contract terms, Yanolja effectively forced providers to pay higher commissions to maintain visibility and attract customers. This squeezed profit margins and limited their ability to compete effectively. The KFTC’s action aims to restore a level playing field and promote fair competition within the South Korean hospitality industry.

Yanolja’s Response & Future Implications

Yanolja has publicly acknowledged the KFTC’s findings and pledged to implement corrective measures to address the identified issues. These measures include:

1. Revising pricing Algorithms: Implementing transparent pricing algorithms that accurately reflect market rates and avoid artificial inflation.
2. Adjusting Ranking Criteria: Prioritizing listings based on a combination of factors, including customer reviews, quality, and relevance, rather than solely on commission payments.
3. Revising Contract terms: Removing unfair clauses from contracts with lodging providers and ensuring that terms are fair and reasonable.
4. Improving Openness: Providing clear and accurate information to consumers about pricing, discounts, and the terms of the “Best Price Guarantee.”

This case sets a precedent for increased regulatory oversight of OTAs globally. Other platforms, such as Booking.com, Expedia, and Airbnb, may face similar scrutiny if they are found to be engaging in deceptive or anti-competitive practices. The focus will likely be on OTA transparency and ensuring fair treatment of both consumers and lodging partners.

Real-World Example: The Case of the Inflated Room Rate

A recent investigation by a consumer advocacy group in South Korea revealed a specific instance of Yanolja’s deceptive pricing practices. A standard double room at a motel in Busan was listed at 80,000 won. However, the KFTC found that the price had been artificially raised to 120,000 won just hours before a “33% off” promotion was applied, effectively reducing the price back to 80,000 won – the original rate. This illustrates the manipulative tactics employed by Yanolja to mislead consumers.

Benefits of Increased OTA Regulation

Stronger regulation of OTAs offers several benefits:

Enhanced Consumer Protection: Consumers benefit from more transparent pricing, accurate information, and a fairer marketplace.

Increased Competition: Fairer competition among lodging providers leads to lower prices and better quality services.

Improved Trust & Transparency: Increased transparency builds trust between consumers, lodging providers, and OTAs.

Enduring Growth of the Hospitality Industry: A level playing field fosters sustainable growth and innovation within the hospitality sector.

Practical Tips for Consumers Booking Accommodation Online

* Compare Prices Across Multiple Platforms: Don’t rely solely on one OTA