Automobile Card Fee Freeze Expected... Continued Backlash from Medium-Sized Franchisees

Mart Association, etc. "Freeze for large franchise stores with strong bargaining power... Shifting burden to medium-sized franchise stores"

The Korea Mart Association is holding a rally to secure negotiation rights for card fees on the 29th at the Seoul Gwanghwamun Citizen Open Square. / Photo by Moon Honam munonam@

[Asia Economy Reporter Yu Je-hoon] In the franchise store card fee rate negotiations returning after three years, the card industry and large-scale franchisees such as automakers have agreed to 'freeze' the fee rates. On the other hand, medium-sized franchisees like neighborhood marts continue to oppose, calling it a "burden shift."

According to the automaker industry and financial sector on the 29th, each automaker has tentatively agreed to freeze the fee rates with major card companies. Accordingly, the franchise store card fee rates for automakers are expected to remain at the previous level of 1.8~2.0% for the next three years.

During the fee rate negotiations in 2019, automakers clashed with some card companies by unilaterally raising franchise store card fees and even terminating contracts with certain card companies, but this year’s negotiations concluded without significant issues.

In contrast, medium-sized franchisee groups who heard this news have announced a tough response. The Korea Mart Association, composed of small and medium-sized neighborhood marts, held a rally near the Government Seoul Office in Jongno-gu, Seoul, in the afternoon, protesting against the card companies’ fee increases. The Payment Gateway Association (PG Association), which is also struggling in negotiations with the card industry, joined the rally.

They criticize the card industry for freezing fee rates for large-scale franchisees while shifting the burden by raising fees for medium-sized franchisees with less negotiating power. A card industry official stated, "Unlike three years ago, negotiations with large-scale franchisees such as automobile and airline companies are proceeding smoothly this year," adding, "We are continuing discussions with franchisees who have raised objections to the fee rates."

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