Hundreds of Thousands of Victims Likely in Trillion-Won Scale Issuance Fraud
On the afternoon of the 13th, subscribers demanding refunds gathered at the headquarters of the payment platform company 'MergePoint' located in Yeongdeungpo-gu, Seoul. [Image source=Yonhap News]
[Asia Economy Reporter Jo In-kyung] As refund demands from customers affected by the 'Muk-Twi' controversy surrounding Merge Point continue, there is a growing movement within online communities to pursue legal action. In the secondhand market, individuals offering to buy Merge Point?already reduced to worthless scraps?at bargain prices have emerged, drawing attention to the background of this trend.
On the 18th, numerous Merge Point victim groups established on portal site communities have seen registrations from consumers who suffered losses after purchasing Merge Point ranging from tens of thousands to hundreds of thousands of won. Even considering duplicate registrations, the number of victims gathered here is estimated to be at least tens of thousands, and including those who have not joined, the total is estimated to reach hundreds of thousands. Most of these consumers had purchased Merge Point at a 20% discount to buy more cheaply at convenience stores, large supermarkets, or cafes.
The Merge Point company suddenly announced the suspension of its service on the 11th, promising a 90% refund to purchasers; however, it is known that refunds have been delayed except for some cases.
In particular, before the service suspension incident, the cumulative issuance of Merge Point exceeded 100 billion won, raising doubts about whether actual refunds are possible. Some have raised suspicions that Merge Point operated a 'Ponzi scheme,' using fees from new customers to pay profits to existing customers.
In response, some victims have begun preparing collective lawsuits, stating that refunds from Merge Point are not being made uniformly, and that abnormal procedures are being followed, such as requiring consumers to sign a pledge not to dispute the 90% refund.
Meanwhile, on Naver Cafe's Junggonara and other platforms, posts offering to buy Merge Point at 5-20% of face value are appearing one after another. For example, there are offers to buy 200,000 won prepaid credits for 10,000 won.
This can be seen as an attempt by victims who have not received refunds to cheaply acquire points and use them at full value if point usage is normalized in the future. However, since normalization of Merge Point currently seems difficult, victims suspect other motives.
There are also suspicions that the Merge Point company is trying to indirectly purchase victims' points in the secondhand market to reduce the cost of resolving the situation. Since a normal refund would require paying 90% of the purchase price, it is explained that the company is disguising itself as individual buyers to settle damages with small amounts. As the controversy continues, Junggonara has advised members to stop such transactions, warning that disputes or usage problems may arise between members.
Meanwhile, the National Police Agency received a request for investigation from the Financial Supervisory Service regarding Merge Plus, the operator of Merge Point, on charges of violating the Electronic Financial Transactions Act, and assigned the case to the Seoul Metropolitan Police Agency the day before. On the 18th, Merge Point posted a notice on its website stating that it will reorganize its online refund policy and announce plans for service resumption at a later date.
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