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An Examination on the Unconstitutionality of Credit Cards through Public Law - Focusing on the unconstitutionality of credit card merchant discount fee -

  • Public Land Law Review
  • Abbr : KPLLR
  • 2011, 55(), pp.339-362
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

Kim, Sang-Kyum 1 류기철 1

1동국대학교

Accredited

ABSTRACT

The US financial crisis broke out in the late 2000s, and its aftermath is causing a worldwide recession. As an export-oriented economy, Korea has been under significant influence of the global economic crisis. As for now, thanks to the efforts of the state and people, Korea is coping well with the crisis. However, decline in domestic demand and aggravation of the world economy are increasing the economic pressure and burden on people. Under these economic circumstances credit card merchants are especially going through a difficult time, due to a relatively high discount fee. Credit card companies and credit card merchants have bred discord during the last ten years because of this fee. However since the 「Credit Specialty Finance Company Law」contains provisions unilaterally in favor of the credit-specialized financial companies, there is not much room for maneuver for the credit card merchants in law and institutions. It has been about 30years that the credit card system was introduced and established in Korea. The use of credit card enhances the transparency of transactions, and thereby contributing to tax policies of the state. It also offers financial benefits by enabling people making transactions without carrying cash. Against the backdrop of these benefits, the government has pushed the enhancing policy of credit card use forward in earnest since the 1990s. As a result, credit card companies were granted favor, while credit card members or credit card merchants, became disadvantage in related provisions. Moreover, it is provided as compulsory in the law that credit card merchants should base their transactions on credit cards and that they should not make excessive demands on credit card members. Due to these provisions, credit card companies make unilateral decision on the discount fee that the merchants receive, and enforce it. The current 「Credit Specialty Finance Company Law」 imposes a unilateral duty of credit card uses to the credit card merchants through provision 1 of article 19. The imposition of such duty should be balanced by legal policies that grant credit card merchants corresponding rights. Therefore, our State should straighten out the current unfair discount fee by amending the law. And strengthening the right of credit card merchants would be the ultimate solution to the problem.

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