[Exclusive] "Stock Investment Not Allowed with Card"... Suspension of Card Payment for Financial Gift Certificates

'Sangtech (Gift Certificates + Investment)' Setback
Financial Authorities "Remove from Credit Card Payment Methods"

[Asia Economy Reporters Sunmi Park, Hayoung Ki] Office worker Kim Sumin (alias) has been purchasing 500,000 KRW worth of financial gift certificates every month at the beginning of the month through open markets such as 11st and Gmarket. She uses card payments to accumulate card performance, receiving a 10% discount provided by the open market as well as card discount benefits by meeting card usage requirements. The purchased financial gift certificates are used to buy stocks or funds, and some can be converted into cash. For example, she buys 100,000 KRW worth of stocks through a securities company application (app) and cashes out the remaining 400,000 KRW. This method yields cash profit from gift certificate purchases and card benefits, making it a triple win.

However, this kind of 'Sangtech (Gift Certificate + Investment Tech)' will no longer be possible. Financial authorities have judged that purchasing stocks with cards and cashing out part of them is problematic.

According to the financial sector on the 26th, online shopping platforms including 11st have blocked all credit card payments for financial gift certificates issued by securities companies such as Korea Investment & Securities online financial gift certificates and KB Securities gift certificates since the day before. Financial gift certificates are exclusive financial product vouchers that can be used to purchase or subscribe to domestic and foreign stocks, bonds, funds, repurchase agreements (RP), equity-linked securities (ELS), derivative-linked securities (DLS), and more. Up to 500,000 KRW can be registered monthly, and even if only 1 KRW is used for stocks, the remainder can be immediately cashed out. Withdrawal is also possible after 31 days even without transactions.

What is the problem with credit card payments for financial gift certificates?

Due to these characteristics, financial gift certificates have recently surged as a financial investment tool mainly among the 20s and 30s generation. Even if purchasing gift certificates with credit cards, it is recognized as usage performance, allowing users to accumulate mileage or enjoy additional benefits, and immediate cash conversion after purchase was possible. Therefore, even those without the intention to invest in financial products have increased their purchases to meet the monthly limit. An industry insider said, "Since you can pay the money on the card payment date after purchasing financial gift certificates with a credit card, it is widely known as a way to invest in financial products without actually holding cash," adding, "These methods are called 'Sangtech' in online stock investment communities."

What is the background behind the sudden block on card payments?

The recent block on card payments was due to intervention by financial authorities. A financial authority official explained, "We requested excluding credit cards as a payment method for financial gift certificates," adding, "Unlike other gift certificates, financial gift certificates have less strict cash withdrawal conditions, so there was a judgment that continued card payments could cause side effects." He further explained, "According to the Specialized Credit Finance Business Act, financial investment products cannot be purchased with credit cards, while gift certificates can be bought with cards," and added, "Although financial gift certificates are classified as gift certificates, they also have the nature of financial investment products, so inspection was necessary."

The card industry accepts this measure but still feels regretful. Although registering financial gift certificates as 'gift certificates' on online platforms caused loopholes, the financial authorities could have consulted with the card industry to prevent card payments from being made in the first place. A card industry official pointed out, "The nature of financial gift certificates is ambiguous," adding, "There should have been consultations on how to define their nature before selling financial gift certificates."

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