The ruling Democratic Party(DP) and the government decided to lower credit card processing fees for small businesses in a bid to ease their burdens amid the prolonged COVID-19 pandemic.

Following a meeting on Thursday, the DP and Financial Services Commission(FSC) agreed to lower the commission rate from zero-point-eight to zero-point-five percent for small stores with annual sales of less than 300 million won.

Those with annual sales of 300 to 500 million won will see the rate reduced from one-point-three to one-point-one percent, and those in the 500 million to one billion won group will go from one-point-four to one-point-25 percent.

Businesses with up to three billion won in annual sales will have the commission rate cut from one-point-six to one-point-five percent. The government expects around 96 percent of affiliated stores to benefit from the fee reduction.

The two sides will also form a task force centered around the FSC to seek ways to improve coexistence between the businesses, credit card companies and consumers.