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

Published 06 Oct.2021 15:09(KST)

Imposition of Fines and Strong Administrative Actions Such as Franchise Cancellation Upon Detection

Haenam-gun New Government Building Exterior Photo by Asia Economy

[Haenam＝Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] Jeonnam Haenam-gun (Governor Myung Hyun-gwan) is operating a special crackdown period on the illegal distribution of Haenam Love Gift Certificates until the 20th to eradicate illegal distribution of the gift certificates.

According to the county on the 6th, this special crackdown is being conducted to prevent illegal distribution in advance due to the increase in sales from the continuous 10% discount sale of gift certificates and the expansion of the issuance scale of gift certificates due to the payment of the National Coexistence Support Fund.

The main crackdown items include the receipt of gift certificates by unregistered merchants, refusal or unfavorable treatment of gift certificate payments at merchants (demanding an extra 10% VAT), exchanging gift certificates received without selling goods or providing services (so-called 'Kkang'), and merchants continuously purchasing gift certificates under another person's name and exchanging them.

For detected merchants, strong administrative measures such as fines, recovery of unjust profits, and cancellation of merchant registration will be imposed according to the Act on the Promotion of Local Love Gift Certificates.

In addition, in cases of serious violations, the county plans to respond strongly by requesting investigations from investigative agencies.

Haenam-gun is responding to illegal activities related to gift certificates by monitoring all distribution processes such as manufacturing, sales, and exchange of gift certificates in real time through an integrated gift certificate management system, and conducting telephone surveys of buyers and on-site inspections of merchants when suspicious merchants are found to continuously manage and monitor illegal distribution.

Also, the county and towns/villages have established illegal distribution reporting centers to receive reports of illegal distribution at all times, and operate a reward system that pays 100,000 KRW per report and up to 500,000 KRW annually to informants.

A county official said, “We will strongly crack down on illegal distribution activities that abuse the Haenam Love Gift Certificates, which play a significant role in revitalizing local small businesses,” and added, “If you suspect illegal distribution of gift certificates around you, please actively report it to the County Office Economic Industry Division or the town/village industry team.”

Meanwhile, as of September, Haenam Love Gift Certificates have been actively distributed, recording the highest sales amount among nationwide counties with 132.6 billion KRW sold.