'Refund Crisis' Merge Point Incident Enters Collective Dispute Mediation

[Image source=Yonhap News]

[Asia Economy Reporter Seomideum] Collective dispute mediation procedures are set to begin regarding the Merge Point incident, which caused a "refund chaos" last year.

According to the Korea Consumer Agency on the 27th, the Consumer Dispute Mediation Committee announced on the 21st that it would initiate collective dispute mediation procedures for this case.

The Dispute Mediation Committee will announce the initiation by April 3 and then hold a meeting to determine the business operator's liability for compensation.

If the meeting concludes that there is liability for compensation, the committee plans to conduct further investigations, decide on consolation payments, and propose a mediation plan.

The mediation period is 30 days after the announcement of initiation, but it can be extended twice for 30 days each time, making the maximum period 90 days.

A representative from the Consumer Agency stated, "Since there are many victims, we will strive to reach a conclusion within the first half of the year."

As there are currently about 7,200 applicants for collective dispute mediation, no additional applicants will be accepted to participate in the mediation.

Instead, if mediation is established, a compensation plan will be obtained from the business operator to ensure that victims who did not participate in the mediation also receive compensation equivalent to the mediation terms.

However, even if Merge Plus is found liable and consolation payments are decided, it is uncertain whether the actual victims will receive compensation.

This is because the CEO and the actual operator of Merge Plus are detained and on trial, and Merge Plus’s business operations are virtually impossible.

Merge Plus had promoted "unlimited 20% discount" and sold prepaid recharge points called Merge Points on open markets, but on August 11 last year, it suddenly announced the suspension of point sales and a reduction in usage options.

As a result, users visited Merge Plus headquarters demanding refunds, causing the "refund chaos," and tens of thousands of consumer consultations were received.

Separately from the collective dispute mediation, users filed a criminal complaint against the CEO of Merge Plus and others with the police in September last year and also filed a civil lawsuit seeking over 200 million won in damages at the Seoul Central District Court.

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