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Self-employed tradesmen threaten Lotte Card boycott

June 18, 2012 - 20:14 By Korea Herald
Self-employed tradesmen across the country have threatened to boycott Lotte Card starting next month in protest of the low commission rate Lotte Mart applied to its credit card affiliate.

A group of about 1 million self-employed businesspeople and some 60 organizations representing massage parlors, motels, restaurants and bars said Monday they will start boycotting Lotte Card and Lotte Mart from July 1.

Lotte VIC Market, a warehouse store chain established by Lotte Mart to launch late this month, recently signed an exclusive contract with Lotte Card to apply credit card commission rates of 1.5 percent or less.

This move disrupts market order, the civic group claimed, as a law that bans charging varying commission rates for merchants of different industries and sizes is set to take effect.

“Lotte VIC Market’s contract to offer low commission rates to Lotte Card threw a wet blanket on the efforts to lower card fees for self-employed businesspeople,” said Oh Ho-seok who heads the civic group.

“Over 1 million self-employed businesspeople will boycott Lotte Card.”

Yoo’s group boycotted Samsung Card and Shinhan Card early this year, calling for lower commission rates.

To pressure Lotte Card and Lotte Mart, the merchants’ group plans to hold rallies at large discount chains such as E-Mart and Homeplus, starting with the Lotte Mart outlet in Songpa, southeastern Seoul, on Tuesday.

They are also considering launching an appeal for citizens’ participation in the boycott, filing petitions to the Fair Trade Commission and the Financial Services Commission.

By Kim So-hyun (sophie@heraldcorp.com)