Banks Ask Seoul for Fees

Domestic banks are demanding that the Bank of Korea pay them fees for collecting money for the government such as state taxes and fines, industry officials said Thursday.

The lenders take in the money owed to the government without payment, but the central bank lets them hold the funds for two days so they can generate interest. But the banks complain that the money they earn through that arrangement fails to cover related expenses such as wages and postal charges. As a result, as soon as they finish an analysis of the full costs involved, the banks plan to ask the central bank to pay them directly for the service.

The central bank plans to agree to the change, after consultations with the finance ministry, if the banks present a workable system.