Gift Certificate 'Kkang' Beware... Gyeongnam Province to Crack Down on Fraudulent Distribution of Local Love Gift Certificates Starting from the 16th

Cancellation of Franchise Registration and Imposition of Administrative Fines Upon Detection

Gyeongnam Province will crack down on the fraudulent distribution of local love gift certificates from the 16th to the 31st.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongnam Province will conduct a comprehensive crackdown on the fraudulent distribution of local love gift certificates from the 16th to the 31st of this month.

In accordance with the nationwide crackdown plan by the Ministry of the Interior and Safety, Gyeongnam Province will strengthen the crackdown on fraudulent distribution of Gyeongnam Love Gift Certificates, commonly known as ‘gift certificate scams,’ and cooperate with cities and counties issuing local love gift certificates to address concerns about fraudulent distribution arising from the expansion of gift certificate issuance.

The gift certificate management system will monitor transactions in real time, extract suspicious transaction details, and conduct telephone verification with the affiliated stores as well as on-site inspections.

Through the Gyeongnam Small Business Association, a resident reporting center will be operated to encourage voluntary participation in the crackdown by residents.

The main targets of the crackdown are acts commonly called ‘scams,’ including ▲receiving or exchanging gift certificates without selling goods or providing services ▲receiving gift certificates through transactions exceeding actual sales ▲refusing payment with local love gift certificates or treating them less favorably compared to other payment methods.

Both Gyeongnam Love Gift Certificates and city/county gift certificates can be reported for fraud via the bulletin board on the Gyeongnam Small Business Association website or through a dedicated telephone consultation center, and the issuing local government will handle the reports accordingly.

Stores found to be involved in fraudulent distribution as a result of the crackdown will face administrative measures such as guidance, cancellation of store registration, recovery of unjust profits, and fines in accordance with the ‘Act on the Promotion of Use of Local Love Gift Certificates’ and the ‘Act on the Management of Subsidies,’ depending on the severity.

Seo Chang-woo, head of the Small Business Policy Division, stated, “There should be no cases of abuse of local love gift certificates issued to stimulate local consumption and support small businesses,” adding, “We will contribute to the virtuous cycle of the local economy by establishing a sound distribution order through thorough crackdowns.”

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