Haenam-gun Conducts Comprehensive Crackdown on Illegal Distribution of Local Gift Certificates

Joint Military and Eup/Myeon Crackdown, On-Site Inspection to Prevent Gift Certificate Fraud

Haenam-gun Office Building Exterior (Photo by Haenam-gun)

[Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] Haenam-gun, Jeollanam-do announced on the 20th that it will conduct a comprehensive crackdown until the 31st to prevent the illegal distribution of Haenam Love Gift Certificates.

Following recent cases in other local governments where organizations set up ghost companies, registered them as affiliated stores, made false payments worth billions of won, and pocketed the difference, the county plans to eradicate illegal distribution in advance through a large-scale crackdown and create a healthy distribution environment for Haenam Love Gift Certificates.

The county will form a joint crackdown team with towns and townships, and the main items to be inspected include receiving gift certificates without selling goods or providing services, receiving gift certificates exceeding the actual transaction amount, exchanging fraudulently received gift certificates, refusing gift certificate payments, or demanding an additional 10% charge under the name of value-added tax.

If illegal distribution activities are detected as a result of the crackdown, strong measures will be taken according to the Act on the Use of Local Love Gift Certificates, including imposing fines up to 20 million won, canceling the designation of affiliated stores, and recovering the amount of fraudulent receipts. A fine of up to 5 million won will also be imposed for refusing or obstructing investigations into violations.

Haenam-gun is actively working to boost the local economy by expanding the issuance of Haenam Love Gift Certificates to 140 billion won this year, the largest scale in Jeollanam-do.

A county official urged, “During these difficult times due to COVID-19, the purpose of operating Haenam Love Gift Certificates, which serve as a support for local markets and small businesses, must not be damaged by illegal distribution. We ask for the active interest of affiliated store owners and residents.”

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