Busy Card Companies Amid Spread of New Coronavirus... "Tracking Confirmed Cases' Movements"

Establishment of Emergency Contact Network System with Korea Disease Control and Prevention Agency
24-Hour Response System

[Image source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] As the novel coronavirus infection (Wuhan pneumonia) spreads, credit card companies are also responding busily. This is because they are transmitting the confirmed patients' movement routes through card payment information.

According to the industry on the 5th, each credit card company has established an emergency contact network system with the Korea Centers for Disease Control and Prevention (KCDC) since the 31st of last month and has entered a 24-hour response system. When a novel coronavirus confirmed case appears, card payment information is provided to the KCDC to identify the confirmed patient's movement route. The provided information includes not only card usage details but also transportation card information.

During the day, the department handling customer information and at night, the approval department are responding to the KCDC's information provision requests. The Credit Finance Association has also started emergency work with the responsible department due to this situation. They extend work hours until 9 p.m. on weekdays and operate on Saturdays and Sundays.

In addition, credit card companies are providing special support to merchants and customers affected by the novel coronavirus. KB Kookmin Card offers individual consultations to small merchants with annual sales under 500 million KRW confirmed to be affected by the novel coronavirus, providing ▲ deferment of credit card payment claims ▲ installment payments for lump-sum usage ▲ changes in repayment conditions for long-term card loans (card loans) ▲ various marketing supports.

Samsung Card also shortens the payment cycle for merchants confirmed to be affected by one day (previously D+2 days for merchants). Additionally, for customers confirmed to be affected, they provide support such as up to 6 months deferment of payment claims, 2 to 6 months interest-free installments for all industries, and up to 30% discount on loan interest rates when using card loan products.

Hana Card, through emergency financial services, defers credit card usage amounts (lump-sum, installments, card loans, cash services) for small merchants with annual sales under 500 million KRW for up to 3 months. Even if overdue, debt collection is suspended for up to 6 months, and installment repayment is allowed. Also, interest on newly applied long-term card loans (card loans) and short-term card loans (cash services) during this period is reduced by 30%.

The cooperation system between credit card companies and the KCDC could be established early thanks to the revision and enforcement of the "Infectious Disease Prevention and Control Act" in January 2016. This was a follow-up measure after the Middle East Respiratory Syndrome (MERS) incident. The revised law newly included a clause allowing the KCDC to request information prescribed by presidential decree to identify the confirmed patient's movement route, and the enforcement decree specified credit, debit, and prepaid card usage details as such information.

This content was produced with the assistance of AI translation services.