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South Korean government to add credit card restrictions

December 29, 2011

The South Korean government is hoping to better regulate the credit card industry to help keep consumers out of debt.

The South Korean government is hoping to better regulate the merchant services industry to help keep consumers out of debt.

Yonhap reports that the Financial Services Commission announced that it would be making the requirements for credit card applications more stringent to help residents stay afloat and encourage more of them to use debit cards. Under the new rules, those applying for credit cards will have to be over the age of 20, have disposable income and have a suitable credit rating.

According to the leadership, the changes will help many citizens.

“Card loans accounted for 3.8 percent of the total household debt as of end-March. However, given the fact that a lot of low-credit users rely on credit card loans, a rise in card loans could pose risks to the local financial sector,” FSC Director General Seo Tae-jong said, according to the news source.

In other South Korean credit card news, Samsung Card, owned by Samsung Group, announced that it would be selling its holdings in Samsung Everland to KCC Corporation.

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