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December 27, 2013

South Korea finance regulator raises daily purchase limit on debit cards to $5,600

Financial Services Commission (FSC), the South Korean financial regulator, has increased the daily purchase limit on check cards usage from current KRW3m ($2,847) to KRW6m ($5,659) from January 2014.

By Verdict Staff

Financial Services Commission (FSC), the South Korean financial regulator, has increased the daily purchase limit on check cards usage from current KRW3m ($2,847) to KRW6m ($5,659) from January 2014.

The move by the commission is expected to promote the usage of debit cards and to tackle the increasing household debts by imposing strict regulations on credit cards.

Under the new rules, check card holders will also receive refunds a day after cancelling the requests, reported The Korea Times.

FSC non-banking division deputy director was quoted by the website as saying that banks and credit card companies will be able to set a daily limit on check cards from January under their guideline introduced in September.

"Debit card holders have complained that their daily limit was too low," the official added.

Some of the major credit card companies that issue check cards in the country are Shinhan, Hyundai, KB Kookmin, Samsung, Lotte, Woori, Hana SK and others.

According to FSC, the debit card usage has generated KRW66.2tr ($62bn) in the first nine months of 2013, up from KRW60.8tr ($57bn) in 2012.

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