Aftermath of the Merge Point Incident... Consumer Agency Faces Surge in Consumer Inquiries

New Type Gift Certificates 6465.3%? Gift Certificates 208% Increase

August Consumer Consultation Item-wise Month-over-Month Growth Rate

[Asia Economy Reporter Lim Chun-han] Last month, following the 'Merge Point Incident,' consumer consultations related to 'new types of gift certificates' and 'gift certificates' significantly increased. Many consultations involved requests for refunds due to restrictions on the use of gift certificate points, which were delayed or denied.

On the 24th, the Korea Consumer Agency and the Korea Consumer Organization Council announced that an analysis of the top items with increased consultations at the 1372 Consumer Counseling Center last month showed that new types of gift certificates increased by 6465.3% compared to the previous month, followed by gift certificates at 208%.

Merge Plus sold Merge Points, a prepaid recharge credit, promoting an 'unlimited 20% discount,' but on the 11th of last month, it suddenly announced the suspension of point sales and a reduction in usage locations. Subsequently, amid controversy over 'Muk-twi' (scam and run), users' refund demands surged, and the police launched an investigation. On the 17th, about 150 Merge Point users filed a lawsuit against Merge Plus seeking damages.

The number of consumer consultations in August was 66,735, an increase of 18.7% compared to the previous month and 5.1% compared to the same month last year. The item with the highest number of consultations was new types of gift certificates with 14,378 cases. This was followed by 'similar investment advisory' with 2,955 cases and 'mobile phone services' with 1,774 cases. By reason for consultation, contract cancellation and penalty fees accounted for 23.3%, quality and A/S (after-sales service) related issues 21.3%, and contract non-fulfillment 18.6%, in that order.