Yeosu City to Conduct Intensive Crackdown on Illegal Distribution of Yeosu Love Gift Certificates Until the 18th of Next Month

Published 27 Oct.2022 13:09(KST)

Up to 20 Million KRW Fine and Recovery of Unfair Gains Upon Detection, Whistleblower Reward System in Operation

Yeosu City to Conduct Intensive Crackdown on Illegal Distribution of Yeosu Love Gift Certificates Until the 18th of Next Month

[Yeosu=Asia Economy Honam Reporting Headquarters Reporter Choi Cheol-hoon] Jeonnam Yeosu City (Mayor Jeong Gi-myeong) announced that it will conduct a comprehensive crackdown on the illegal distribution of Yeosu Love Gift Certificates from the 31st of this month to the 18th of next month.

The main targets of the crackdown are ▲whether franchise stores in restricted industries such as gambling industries are registered ▲acts of receiving gift certificates without selling goods or providing services (so-called ‘Kkang’) ▲franchise stores purchasing gift certificates under another person's name and then exchanging them ▲franchise owners acting as agents for exchanging fraudulently received gift certificates, etc.

The city plans to monitor the ‘Gift Certificate Integrated Management System’ to pre-verify suspicious transaction data before dispatching inspection teams to the field.

Unannounced inspections will be conducted not only on suspicious or reported franchise stores but also on those whose gift certificate redemption amounts have significantly increased.

If caught during the crackdown, depending on the severity, measures such as on-site guidance or cancellation of franchise registration will be imposed.

In addition, if illegal distribution is clearly confirmed, a fine of up to 20 million won will be imposed, and unjust profits will be recovered.

In severe cases, stronger measures such as tax audits by the National Tax Service and criminal charges may be taken.

Meanwhile, a reward system for whistleblowers to eradicate illegal distribution of gift certificates is also in operation.

If illegal distribution is discovered, reporting immediately to the Yeosu City Regional Economy Division will result in receiving Yeosu Love Gift Certificates after verification.

A city official said, “Yeosu Love Gift Certificates are the easiest and most effective way to revive the local economy and support small business owners. As the use of gift certificates is increasing due to the payment of daily recovery support funds to all citizens, we will do our best to prevent illegal distribution,” adding, “We ask for the active cooperation of small business owners and citizens in establishing order in gift certificate distribution.”