Card issuers post 0.15% net profit gain in H1

South Korea's four major credit card firms posted a 0.15 percent year-on-year gain in net profit for the January-June period, data showed Monday.

The combined net profit of the companies -- Shinhan Card, KB Kookmin Card Co., KEB Hana Card and Woori Card -- came to 608.2 billion won ($535 million) in the first half, up 900 million won from the same period last year, according to data released by the companies.

The gain brushed off concerns that the earnings results of the four credit companies could get worse following a cut in their fee rate imposed on their member stores.

In January, the credit card companies lowered the rate to 0.8 percent for mom-and-pop stores whose annual sales came to less than 200 million won. They also cut the fee rate to 1.3 percent to member stores with annual sales between 200 million won and 300 million won.

The credit card industry expects their fee income will fall by 670 billion won annually due to the lower card fees they receive from member stores.

Still, their combined net profit has increased on a gradual increase in credit card purchases and lower operational costs resulting from record-low rates. (Yonhap)