Gyeonggi-do Cracks Down on Local Currency Fraud... Until the 31st of This Month

Gyeonggi Province is joining hands with 31 cities and counties within the province to conduct a joint crackdown on illegal distribution of local currency in Gyeonggi until the 31st of this month.

On the 20th, Gyeonggi Province announced that to foster a proper usage culture of local currency and block illegal distribution, it will focus inspections on affiliated stores for ▲illegal receipt and unlawful exchange of gift certificates (local currency) without selling goods or providing services ▲operation of restricted businesses such as gambling industries and entertainment establishments ▲refusal to accept local currency payments ▲refusal to issue cash receipts.

Gyeonggi Province plans to take strict measures against acts that disrupt the order of local currency circulation in accordance with the "Act on the Promotion of Use of Local Love Gift Certificates."

Current law stipulates that refusal or obstruction of investigations into violations may result in fines of up to 5 million KRW, and depending on the severity of the violation, financial penalties such as recovery of unjust profits, cancellation of store registration, administrative guidance, and fines can be imposed. Additionally, in serious cases, further actions such as referral to investigative agencies may be taken.

Kim Kwang-deok, Director of the Regional Finance Division of Gyeonggi Province, stated, "By supporting the establishment of a sound distribution base and activation of the use of Gyeonggi local currency, we will contribute to revitalizing traditional markets and neighborhood commercial districts, improving the income of small business owners, developing the regional economy, and enhancing the welfare of Gyeonggi residents. Through this crackdown on illegal distribution and continuous inspections in the future, we will create a Gyeonggi local currency that is more trusted by the residents."

Meanwhile, last year, Gyeonggi Province uncovered a total of 24 cases through a comprehensive crackdown on illegal distribution. The majority of violations involved operating restricted businesses, failure to issue cash receipts, and demanding amounts different from cash payments. Gyeonggi Province imposed administrative measures such as cancellation of registration and on-site guidance on some affiliated stores.