Merzi Victims Group Lawsuit with 2,000 Plaintiffs Becomes Reality... "Financial Companies and E-commerce Also Under Review"

Hire Lawyers and Law Firms, Plan for Compensation Lawsuit as Early as September
About 2,000 Participants Expected...Estimated Damage Scale 600 Million KRW
Lawsuit Discussion Also Underway Against Financial Company Hosting Event and E-commerce Platform Mediating Sales
Victims Condemn "Ignoring Responsibility for Consumer Damage Recovery"

Amid concerns over significant losses for many affiliated individual business owners, excluding large retail corporations prepared for compensation due to the massive refund crisis of the payment platform Merge Point, the headquarters of "Merge Point" in Yeongdeungpo-gu, Seoul, on the 18th. Photo by Kim Hyunmin

Thousands of victims of the mobile discount payment platform Merge Point are filing a class-action lawsuit against the operating company, Merge Plus. There is also a possibility of lawsuits against financial institutions and e-commerce companies that were involved in related events or sales mediation, which is expected to cause significant repercussions. Even if they win against Merge Plus, it is uncertain whether all the damages can be recovered, and the number of participants and the scale of damages are expected to grow further.

On the 20th, Mr. Ko, who operates the "Merge Point Fraud Refund Victims Lawsuit Compensation Community (Meosamo)," said, "Currently, we expect about 2,000 people to participate in the lawsuit," emphasizing, "We will demand a full refund per person through the damages lawsuit." Meosamo is a community created by Merge Point victims for a class-action lawsuit. It has about 42,000 users, making it the largest related community.

Mr. Ko explained, "We are currently in the process of finding a lawyer and plan to recruit within this week," adding, "If that does not work out, we will directly approach a law firm and proceed with the lawsuit by September." However, regarding criminal charges, he said, "If we can receive all the damages through compensation, we intend to end it there."

Photo by Kim Hyun-min

Regarding the estimated damage scale, he said, "It varies from 50,000 KRW to 2 million KRW," adding, "We calculate an average of about 300,000 KRW, and even with this, it already exceeds 600 million KRW." Since formal participation has not yet begun, Mr. Ko believes the number of participants and the scale are likely to increase.

However, regardless of the lawsuit outcome, it is unclear whether all the damages can be recovered from Merge Plus. Merge Plus claims that refund work is underway, and even CEO Kwon Nam-hee has stated that there is a "normalization plan," but the specific refund amount and schedule remain unknown. Some analysts suggest that Merge Plus is in a state of capital erosion.

Financial Institutions and E-commerce Also Considering Lawsuits: "Ignoring Consumer Damage"

There is also discussion about filing lawsuits against financial institutions that held events in connection with Merge Plus and e-commerce companies that mediated sales. Financial institutions involved in Merge Plus-related events include Toss, Hana Members, and Payco, while e-commerce platforms that mediated Merge Point sales include Tmon, Gmarket, 11st, and Wemakeprice. When asked whether he had considered suing these companies, Mr. Ko said, "It is under discussion," leaving the possibility open.

On the 18th, a notice informing that in-person refunds are not possible was posted at the headquarters of 'Merge Point' in Yeongdeungpo-gu, Seoul. Photo by Kim Hyun-min

Financial institutions emphasized the issue of Merge Point, benefiting from revenue generation and customer acquisition effects during the point sales process. Toss offered a subscription support fund of 50,000 Toss points and a 100% cashback on subscription fees as part of the 'Merge X Toss' launch event. Hana Members also highlighted the launch of the 'Merge Plus X Hana Members' promotion with subscription support funds and cashback events. E-commerce companies earned intermediary fees by mediating the sale of gift certificates with high average transaction values. Considering that open markets charge 3-10% commission fees from gift certificate sellers, it is estimated that they earned tens to hundreds of millions of KRW from Merge Point sales.

Financial institutions and intermediaries claim they bear no responsibility. Financial institutions emphasize that the contracts were simple point sales agreements, not marketing partnerships. E-commerce companies state that there were no defects at the time of initial sales and that refunds are not possible once points have been registered. For quick refunds to occur, financial institutions or e-commerce companies need to compensate consumers and then claim recourse against Merge Plus. Some companies have clauses in their sales terms allowing them to claim recourse in case of consumer damage but have not enforced them.

Among Merge Point victims, criticism of these companies is intense. One victim said, "E-commerce companies are shirking refund and consumer damage recovery responsibilities just because they only mediated," criticizing, "It's like buying spoiled produce at a supermarket and being told to get a refund from the farm because we only mediated." Another victim pointedly asked, "Does this mean financial institutions and e-commerce companies will continue to sell products from unreliable companies without verification in the future?"

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