‘Muktu Controversy’ Merge Point…Consumer Groups Call for Joint Responsibility of Open Markets

Users Visiting Headquarters Request 'On-site Refund'... Service Suspended Due to Overcrowding

On the afternoon of the 13th, users demanding refunds gathered at the headquarters of 'Merge Point' located in Yeongdeungpo-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Concerns over user damages from the ‘MukTwi controversy’ surrounding Merge Point are becoming a reality. Merge Point gained great popularity by offering unlimited 20% discounts at food and beverage stores and convenience stores, but suddenly stopped selling points and drastically reduced places where points could be used.

According to the 'Merge Point Victims' cafe and others on the 13th, Merge Plus, the operator of Merge Point, gathered users at its headquarters early that morning, obtained settlement agreements, and proceeded with on-site refunds. The settlement agreement made public online stated that Merge Plus responded sincerely to refund requests and agreed not to share the settlement details with third parties. Although the authenticity of the agreement has not been officially confirmed, posts claiming to have signed the agreement and received refunds continued to appear.

They revealed that they received refunds amounting to 48% of the face value of Merge Money, which can be used instead of cash. If their verification posts are true, since Merge Money can be purchased at a 20% discount, users effectively received only 60% of their payment back and suffered a 40% loss. In the afternoon, chaos continued as users demanding refunds crowded the site with no room to stand, leading to the suspension of even on-site refunds.

Merge Point Notice.

Earlier, on the 11th, Merge Plus announced it would downscale the Merge Point service. Merge Plus stated, "We have accepted the relevant authorities’ guidance that Merge Plus services can be regarded as prepaid electronic payment means, and for the time being, we will downscale operations by unifying the service classification solely under the food service industry, which is a lawful service form." They added, "We will expedite the registration process for electronic financial business to completely resolve administrative issues and provide a more scalable service within the fourth quarter." They also said that customers wishing for refunds could apply through a refund application page and that 90% refunds would be processed sequentially, but no information was given regarding the processing period.

Since Merge Plus has been operating without registration, it is difficult to estimate the scale of potential damages. According to related industries, the app has one million registered users and 200,000 daily active users. The transaction volume has recently been around 30 to 40 billion KRW per month on average.

Discount sales of Merge Money were frequently conducted on open markets and social commerce platforms. Even around the end of last month, when they likely became aware through communication with the Financial Supervisory Service that selling Merge Money requires registration as an electronic financial business operator, sales continued until the announcement was posted. On the Blue House’s national petition page, a post requested blocking e-commerce companies from settling payment amounts received from card companies to Merge Plus.

Consumer organizations have called for joint responsibility of online platform companies that sold Merge Money. The Korea Consumer Organization Council stated, “Most consumers purchased products through open markets and social commerce, but these platforms refuse responsibility by telling consumers to request refunds directly from Merge Plus,” and added, “By recognizing the joint responsibility of platform companies, practical accountability should be strengthened.”

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