The credit card commission dispute has entered a new phase as the country’s bars, night clubs, massage parlors, hagwon, and other small businesses plan to go on a nationwide strike at the end of this month over transaction fees.
The Federation of Professional Economic-Person Societies, which covers the so-called nightspot business, said on Tuesday it would hold a 50,000 people-strong rally in Seoul on Nov. 30 to call on credit card companies to lower the transaction commission rate to 1.5 percent.
Credit card firms recently announced they would lower the rate from the current 2 percent to below 1.8 percent in a reluctant response to demands from small restaurant owners. They have long complained about the punishing commission rates they have to pay, even for handling small purchases.
The plan, however, applies to restaurant owners whose revenue is less than 200 million won per year, while other small businesses such as bars, nightclubs and hagwon are excluded.
The forthcoming protest is expected to be the biggest in the nation’s history, as 5 million people in some 60 sectors will close shop in protest.
The FPEPS said rallies would be held in Busan and Daejeon in December. Joint outdoor protests will be also staged in other provincial cities including Daegu and Gwangju in January before holding a massive rally again in Seoul in February.
“The nightspot businesses are for the most part small in scale, but are subject to high commission rates,” said Oh Ho-seok, chief of the federation. “Our demand is that credit card firms should cut the rate to 1.5 percent regardless of business categories.”
Credit card companies currently apply a 4.5 percent commission for nightspot and luxury businesses, 3.0-3.5 percent for hagwon and 2.6-2.8 percent for opticians.
The unprecedented one-day shutdown of bars, hagwon and numerous small shops is forecast to cause confusion and inconvenience across the nation.
By Yang Sung-jin (
insight@heraldcorp.com)
