Gangneung City Cracks Down on Illegal Distribution of 'Gangneung Sarang Gift Certificates'

~11. 25 Proxy Purchase Followed by Currency Exchange, Use in Restricted Industries, and Payment Refusal Acts

Gangneung Pay [Gangneung City]

[Asia Economy Reporter La Young-cheol] Gangneung City, Gangwon Province, will conduct crackdowns on illegal distribution related to the expansion of the issuance of the 'Gangneung Love Gift Certificate' until the 25th.

Types of illegal distribution include so-called 'Kkang,' which refers to proxy purchases followed by immediate exchange at the purchaser's own franchise store, use in restricted business sectors, and refusal of payment.

The city uses an 'Abnormal Transaction Detection System' to verify 'irregular small amounts' via phone calls and conducts on-site inspections for 'repetitive large amounts.'

For high-value and repetitive franchise stores, the city will request submission of explanatory materials and, depending on the severity of the act, will take administrative actions such as guidance, cancellation of franchise registration, and imposition of fines, followed by recovery of unjust profits.

As of the end of October, there are approximately 13,800 franchise stores within Gangneung City, and the city plans to establish a system for cracking down on illegal distribution in cooperation with the operating agency.

A city official stated, "Through crackdowns on illegal distribution, we will establish an orderly circulation of gift certificates that help revitalize the local economy."