Gwangyang City Conducts Comprehensive Crackdown on Illegal Distribution of Gwangyang Sarang Gift Certificates

Eradicating Gift Certificate Fraud and Intensively Monitoring Sales Status at Hanaro Mart and Others

[Gwangyang=Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] Gwangyang City, Jeollanam-do announced that it will conduct a comprehensive crackdown on the illegal distribution of Gwangyang Love Gift Certificates in the first half of this year until March 31.

Until now, local governments have irregularly conducted crackdowns on gift certificates, but considering the nationwide significant increase in gift certificate sales, local governments across the country plan to operate a simultaneous crackdown period to eradicate illegal distribution of gift certificates.

The main targets of the crackdown include receiving or exchanging gift certificates without selling goods or providing services, proxy purchasing of gift certificates followed by immediate exchange at the purchaser’s own affiliated store, receiving gift certificates through transactions exceeding actual sales amounts, operating affiliated stores in restricted business sectors, refusing gift certificate payments, or treating gift certificate payments less favorably compared to other payment methods.

If illegal distribution activities are detected, strong measures such as imposing fines up to 20 million KRW and canceling affiliated store registrations will be taken in accordance with the 「Act on the Promotion of Use of Local Love Gift Certificates」.

Additionally, those who refuse or obstruct investigations into legal violations may be fined up to 5 million KRW, and in serious cases, further actions such as referral to investigative agencies will be pursued.

Meanwhile, due to the policy issuance of 37.5 billion KRW in gift certificates as part of the ‘Gwangyang City 3rd Emergency Disaster Living Support Fund’ distributed in January and the 10% discount sales support, gift certificate sales have surged. There is concern that gift certificates may be concentratedly consumed at specific outlets such as agricultural, fishery, and livestock cooperatives’ Hanaro Marts and gas stations, contrary to the original purpose of strengthening local communities and revitalizing the local economy. Therefore, the city plans to monitor the sales status of gift certificates at legally registered affiliated stores.

The city operates a reporting center to prevent illegal distribution and runs a reward system that provides incentives for reporting illegal distribution activities.

Jung Gu-young, head of the Regional Economy Division, said, “We hope to provide practical help to the local economy during the difficult times of COVID-19 by eradicating illegal distribution of Gwangyang Love Gift Certificates and establishing a sound distribution order.”

Gwangyang=Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik hss79@asiae.co.kr

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