CU to Lower Remittance Delay Penalty to a Minimum Annual Rate of 6%

Purpose of Mutual Growth with Franchise Stores

Convenience store CU announced on the 22nd that it will lower the remittance delay penalty to an industry-low level of about 6% per annum. The remittance delay penalty refers to the money incurred when the sales of a franchise store, necessary for settlement, are not remitted without justifiable reasons.

CU has decided to significantly reduce the remittance delay penalty to an industry-low level of around 6% per annum. The photo shows a CU store image. Photo by BGF Retail

Previously, the convenience store industry had operated a penalty rate of 20% per annum for violations of the daily remittance obligation since 2013. However, CU decided to reduce the remittance delay penalty rate starting next month to ease the burden on franchise stores amid the recent economic downturn and increased operating costs. A rate of 6% will apply to unpaid amounts of 1 million KRW or less, and 12% for amounts exceeding 1 million KRW.

A BGF Retail official stated, "Due to the nature of the convenience store business, a remittance delay penalty is imposed to ensure the essential remittance obligation is fulfilled," adding, "Considering the difficult economic situation, we have decided to lower the remittance delay penalty rate to the industry's lowest level, and we will continue to improve various systems for mutual growth with franchise stores in the future."

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