"The cash receipt will be issued under my number, and the points will be credited to the buyer's number."

As the end of the year approaches, illicit trading of department store VIP qualification performance is on the rise.

On December 8, when a buyer expressed interest to a seller online who was offering 5 million won worth of luxury purchase performance for about 5% of the purchase amount, the seller replied, "There are so many people wanting to buy that you will have to wait," and added, "If the previous deal falls through, I will contact you again."

VIP image. Pixabay

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The department store VIP program divides customers into tiers based on annual purchase amounts, offering benefits such as lounge access, free parking, and discounts. Lotte Department Store selects next year’s VIP customers based on the accumulated amount by the end of this month, while Hyundai Department Store and Shinsegae Department Store do so by the end of the year. Although each department store has its own criteria, in general, customers need to accumulate around 5 million to 10 million won in annual purchases to receive even the lowest tier of VIP benefits. This structure has led to rampant illicit trading, as it aligns the interests of customers lacking sufficient performance and sellers seeking cash discounts by purchasing high-priced items.

The department store industry is struggling to prevent fraudulent point accumulation. A representative from one department store said, "We check the cardholder's ID at the time of payment to verify their identity, and we also constantly monitor secondhand trading sites," adding, "If fraudulent use is confirmed, we impose sanctions according to our internal regulations."

Department store sales performance on the secondhand trading platform. Screenshot from Danggeun Market

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However, methods to evade crackdowns are becoming increasingly sophisticated. As exchanging receipts for post-purchase point accumulation has become easier to detect, a new method called 'on-site proxy payment,' where the seller meets the buyer in person at the store and makes the payment on their behalf, has emerged. This tactic exploits the fact that transactions conducted inside the store are virtually impossible to detect.

Experts point out that trading department store performance could be subject to criminal penalties. Attorney Shin Minyoung of Hoam Law Firm stated, "If it is determined that the violation of department store terms and conditions prohibiting fraudulent point accumulation constitutes obstruction of business, charges of interference with business may apply." Jang Jinhwan, a professor at Dankook University Law School, added, "There is a possibility that obstruction of business by fraudulent means could be established," but also noted, "Department stores may face practical limitations in directly proving such cases."