South Korea to phase out magnetic stripe cash cards

KOREA - Old-style magnetic striped cash cards without integrated circuit chips will be blocked from withdrawing cash from automated teller machines (ATMs) in South Korea.

The Financial Supervisory Service said Saturday that users of magnetic stripe (MS) cash cards and credits cards will not be allowed to draw out cash from ATMs, starting from February 3.

From January next year, card loans and credit purchases will also be limited for MS cards.

In an aim to reduce financial counterfeit crimes, financial authorities have been replacing conventional MS-type cards to integrated circuit (IC) cards. As of the end of last month, 99.6 per cent of the MS cards had been replaced, according to officials.

Until March, however, banks and ATM centers will be obligated to keep at least one ATM which accepts MS cards, as a temporary measure to minimise the users' inconvenience.