Consumers across South Korea are facing a surge in credit card-related headaches, particularly when it comes to overseas transactions, revolving payment services, and the fine print of card replacements and annual fees. According to a June 9, 2026 report by the Financial Supervisory Service (FSS), the number of credit card complaints has nearly doubled in just four years, raising red flags for both regulators and the millions of cardholders navigating an increasingly globalized marketplace.
The numbers tell a stark story. In 2022, there were 6,720 official complaints about credit card issues. By 2025, that figure had soared to 12,661—a staggering 88.4% increase, as reported by Yonhap News and Financial Consumer News. This uptick comes as the total number of issued credit cards rose by over 10 million during the same period, reaching more than 134 million cards in circulation. But behind the statistics are real stories of frustration and confusion, especially for those venturing into the world of overseas shopping and digital payments.
Take, for example, the case of a consumer identified as A, who made a purchase from an overseas shopping mall using their credit card, opting to pay in Korean won (KRW). Later, A was shocked to discover that the amount actually charged was much higher than the initial approval. When A contacted the card company, the explanation was sobering: "When you pay in Korean won at an overseas merchant, you are charged not only the overseas transaction fee but also an additional fee for the won currency payment." This dynamic currency conversion (DCC) service, while seemingly convenient, can tack on fees of 3–8%, plus another 1–2% in currency exchange charges. As the FSS points out, it’s almost always cheaper—though a bit less convenient—to pay in the local currency when traveling or shopping abroad.
Another consumer, B, found themselves in a bind when the overseas website where they’d placed an order suddenly shut down, leaving them with neither their purchase nor an easy path to a refund. B’s attempt to cancel the transaction and get their money back was met with another unwelcome surprise: disputes over overseas transactions must be processed through international payment brands like Visa, MasterCard, or JCB, and the entire process can take three to five months. The FSS emphasizes, "All investigation and compensation decisions for overseas disputes are handled by the international brand company, not the domestic card issuer, so the standards are stricter and the process is longer."
To even begin the dispute process, consumers must gather a mountain of evidence—everything from defunct website links and receipts to email or chat records with sellers. And there’s a tight window: claims must be filed within 90 to 120 days of the transaction or receipt date. The FSS advises, "Be diligent in collecting all supporting documents and submit your claim within the standard period to maximize your chances of a favorable outcome."
In light of these challenges, the FSS is urging consumers to make use of available digital safeguards. Services like 'Overseas Usage Safe Settings' allow cardholders to set strict limits on where, when, and how much can be spent abroad—or even to block overseas payments entirely. Meanwhile, activating 'Card Payment Alerts' ensures that every transaction triggers a real-time notification, making it easier to spot unauthorized charges before they spiral out of control. "Active use of these features can minimize the risk of overseas fraud and help consumers respond quickly if something goes wrong," the FSS notes.
But the pitfalls don’t end at the border. Even at home, consumers are finding themselves caught off-guard by the intricacies of revolving credit—known locally as 'revolving payment.' This service lets cardholders pay only a portion of their monthly bill, rolling the rest over to the next month. It sounds tempting, especially in times of financial stress, but it comes with a hefty price tag: as of May 2026, the average interest rate on revolving balances ranged from 15.1% to 18.3%. The FSS warns, "Long-term use can rapidly increase the principal and interest burden and have a negative effect on your credit score."
What’s more, many consumers are unaware that revolving payment is not a mandatory feature. It’s possible to check enrollment status through the card company’s call center, monthly statements, or mobile app—and to opt out if desired. The FSS has received numerous reports from people who claim they never realized they’d been signed up for revolving payment in the first place. "If you don’t want to use it, canceling the service will stop additional fees from accruing," the FSS advises.
Another area of confusion involves the issuance of replacement cards when a card is discontinued. Card companies are required to notify customers at least one month in advance using at least two different communication methods—such as mail, phone, text, or email. Consumers then have 20 days to refuse the new card if they don’t want it. However, as highlighted by Financial Consumer News, there’s a catch: automatic payments for utilities, phone bills, or maintenance fees may not transfer seamlessly to the new card, so it’s crucial to double-check and avoid missed payments.
Annual fees are another sticking point. While unused annual fees are generally refunded on a pro-rata basis when a card is canceled, the first year’s basic annual fee is often non-refundable, as it covers issuance and delivery costs. This is especially important for premium cards, which can carry annual fees running into the hundreds of thousands of won due to special materials or luxury packaging. The FSS recommends, "Carefully consider whether you truly need a premium card before applying, as the initial fee is typically non-refundable."
For those worried about losing accumulated points when a card is discontinued, there’s some relief: points remain valid for their designated period, regardless of the card’s status. And for consumers who want to avoid the pitfalls of dynamic currency conversion, most card companies allow customers to preemptively block KRW payments overseas by enrolling in a 'won currency payment blocking service.'
In summary, the FSS’s message is clear: in an era of rapid digitalization and cross-border commerce, vigilance is more important than ever. Consumers should take full advantage of digital tools, read the fine print, and act quickly when problems arise. As the FSS puts it, "Revolving payment can provide temporary liquidity, but reckless use can lead to unmanageable debt. Use it sparingly and only with careful planning."
With credit card usage showing no signs of slowing down, the need for financial literacy and proactive management has never been greater. The landscape may be complex, but with the right knowledge and a bit of caution, consumers can steer clear of the worst pitfalls and keep their finances on track.