(1) Reasons for Proposal

To follow up on the “Support Measures for Micro Enterprisers and Sole Proprietors” (August 2018) and “Measures for Card Fee Reforms” (November 2018), the Amendment prescribes matters concerning the increased applicability of preferential fee rates for credit cards, and prescribes grounds to apply preferential fee rates to online business entities, owner-driver taxi business entities, and new business entities that use a payment gateway (PG) service.

(2) Major Provisions

A. Prescribe preferential fee rates for credit card merchants with annual sales of more than 500 million won and up to 1 billion won and those with annual sales of more than 1 billion won and up to 3 billion won; and modify relevant provisions (Article 25-5)

B. Apply preferential fee rates to online business entities that use an electronic financial business entity providing a payment gateway (PG) service, and whose sales meet the requirements for preferential fee rates (Article 25-4)

C. Apply preferential fee rates to owner-driver taxi business entities that use an agency for settlements with which a fare settlement-related contract has been entered into, and whose sales meet the requirements for preferential fee rates (Article 25-4)

D. Prescribe that where a new business entity meets the requirements for preferential fee rates based on sales confirmed after commencement of business, preferential fee rates shall apply retroactively within 45 days of the end date of each half-year (Article 25-6)