Gangwon Province to Conduct Nationwide Crackdown on 'Gangwon Gift Certificate Fraud' Until the 18th of Next Month

Focused Crackdown on Illegal Receipt and Exchange of Gift Certificates... Reports of Suspicious Fraudulent Distribution Received
Penalties Imposed, Recovery of Unfair Gains, and Cancellation of Merchant Registration

Gangwon Gift Certificate [Gangwon-do]

[Asia Economy Reporter La Young-chul] Gangwon Province will launch a comprehensive crackdown on 'illegal distribution of Gangwon gift certificates' from the 31st of this month until the 18th of next month.

The main targets of the crackdown are ▲acts of restricted business types registered as gift certificate franchise stores ▲receiving gift certificates without selling goods or providing services (commonly called 'Kkang') ▲purchasing gift certificates on behalf of others and exchanging them at one's own franchise store ▲receiving or exchanging gift certificates through transactions exceeding actual sales amounts.

Additionally, the crackdown includes ▲acting as an exchange agent for gift certificates illegally received by individual franchise stores ▲refusing gift certificate payments or treating gift certificate holders unfairly ▲cases where local governments recognize the need to crack down on unregistered franchise stores, temporarily closed or closed franchise stores, etc.

As of October 23, the number of franchise stores in Gangwon Province is 37,201 for paper gift certificates and 71,859 for mobile gift certificates. Large supermarkets, department stores, gambling industries and illegal gambling industries, karaoke bars, and entertainment bars are restricted from registering as franchise stores.

The province, in cooperation with the Ministry of the Interior and Safety, city and county governments, and operating agencies, will monitor specific transactions through the gift certificate system and investigate suspicious franchise stores based on reports from residents about illegal distribution by conducting on-site inspections.

Franchise stores found violating regulations will face administrative and financial penalties such as guidance, cancellation of franchise registration, fines, and recovery of unfair profits based on relevant laws, and depending on the severity of the case, the police will be requested to investigate.

The Ministry of the Interior and Safety has been conducting crackdowns on illegal distribution since last year and, considering the sufficient guidance period, recommends active penalties for detected cases.

The fine standards are as follows: for the first violation, between 2 million and 10 million KRW; for the second violation, between 3 million and 15 million KRW; and for the third and subsequent violations, between 5 million and 20 million KRW.

Jung Cheol-hwan, Director of the Social Economy Division of the province, stated, "We will continue to strengthen crackdowns and sanctions, including operating a reporting center for illegal distribution, to ensure that gift certificates circulate healthily."

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