Date issued: 15 March 2006
Phone: 02-774-4050 / Fax: 02-774-4090
Collect Traffic Card Service Should Be Maintained!
Korean consumer organizations have expressed deep concern regarding the current crisis over the collect traffic card service, which is used by over 10 million consumers, as it faces threats of discontinuation owing to the difference in service commissions between Korea Smart Card Co. and leading credit card companies.
New card issuance and renewal were discontinued by Lotte, Samsung, Shinhan and KEB Card on February 6, while Hyundai (10th), LG (13th), KB (22nd) and BC Card (including the Woori Bank Card on March 27) are scheduled to discontinue new card issuance or renewal on the dates cited above, meaning that consumers cannot obtain collect traffic cards issued by the majority of local card companies. The existing cards may have to be discontinued as a result of the discord over commission rates.
The Korea National Council of Consumer Organizations (hosted by the Consumers’ Union of Korea) expressed the consumers’ concern at a meeting held on the afternoon of March 14 that was attended by representatives from Korea Smart Card Co., leading credit card companies and Seoul City Government.
The traffic card, which was designed for public transportation services, should be continued as it has been established that the card system has greatly contributed to the consumers’ convenience and the growth of the public transportation system.
It is quite certain that over 10 million consumers will suffer substantial losses if the collect traffic card service is completely discontinued. The attitude of the card companies in thinking that they stand to lose little even if negotiations falter, outrageously neglects the growing inconvenience faced by consumers.
We, the consumer organizations, recommend that Smart Card and other credit card companies continue the traffic card service by taking a more flexible position toward the negotiations. Also, the Seoul City Mayor should actively mediate while exercising his authority to fairly supervise the service on behalf of the citizens. We also urge the government to develop stable operation measures that will help to avoid the annual resurgence of discord over the commission rate.
2006. 3. 15
Korea National Council of Consumer Organizations
Member Organizations:
Citizens Alliance for Consumer Protection of Korea, Consumer Affairs Institute, Consumers Union of Korea, Green Consumers Network in Korea, Korea Consumer Education Center, Korea National Council of Women, Korean Federation of Housewives Clubs, National Council of Homemakers Classes, National Council of YMCAs of Korea, National YWCA of Korea
