[THE INVESTOR] South Korea’s top four credit card firms posted a 0.15 percent on-year gain in net profit during the first six months of this year.
The combined net profit of Shinhan Card, KB Kookmin Card, KEB Hana Card and Woori Card came to 608.2 billion won (US$535 million), up 900 million won from the same period last year, according to data released by the companies in July 25.
An increase in credit card purchases, combined with lower operational costs from record-low rates contributed to the increase.
The gain also came despite concerns about a fee cut from the firms. In January, the credit card companies lowered the rate they charge to member firms to 0.8 percent from 1.5 percent for shops with annual sales of less than 200 million won. They also cut the fee rate to 1.3 percent from 2 percent to those with annual sales between 200 million won and 300 million won.
The credit card industry expects their fee income to fall an annual 670 billion won on the cut.
