Yeosu City Conducts Comprehensive Crackdown on 'Yeosu Love Gift Certificate Fraudulent Distribution'

Strong Action Upon Detection, Request for Self-Regulation Efforts from Gift Card Merchants and Users

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Yeosu City (Mayor Kwon Oh-bong) announced on the 16th that it will conduct a comprehensive crackdown to prevent the illegal distribution of Yeosu Sarang Gift Certificates.

According to the city, a mobile inspection team for illegal distribution of gift certificates will be activated to conduct surprise inspections, including sales verification of reported or suspicious affiliated stores as well as stores with a significant increase in gift certificate redemption amounts.

There will be a reward system offering 100,000 KRW per report for those who report illegal distribution.

The targets of the crackdown include ▲ operating restricted businesses such as gambling establishments ▲ receiving gift certificates without selling goods or providing services (commonly known as ‘Kkang’) ▲ exchanging gift certificates exceeding actual sales amounts ▲ affiliated stores acting as agents for exchanging fraudulently obtained gift certificates or purchasing and exchanging gift certificates under another person's name.

If illegal activities are discovered, a fine of up to 20 million KRW will be imposed, and measures such as cancellation of store designation and recovery of unjust profits will be taken.

A fine of up to 5 million KRW will be imposed for refusal or obstruction of violation investigations, and in serious cases, the city plans to strongly pursue tax audits by the National Tax Service and criminal prosecution.

A city official emphasized, “Illegal distribution of gift certificates is a crime,” and added, “We ask for the active cooperation of citizens and small business owners to establish order in gift certificate distribution so that Yeosu Sarang Gift Certificates can effectively contribute to revitalizing the local economy.”

Meanwhile, Yeosu City has continued proactive measures by selling Yeosu Sarang Gift Certificates with a 10% special discount worth 13 billion KRW last year and 11 billion KRW this year to stimulate local consumption, which has been sluggish due to COVID-19. In November last year, the city launched the rechargeable prepaid card-type gift certificate, Seomseom Yeosu Pay, which has received positive responses.

This content was produced with the assistance of AI translation services.