Yongin City Conducts Special Inspection of Jewelry Stores Suspected of Illegitimate Local Currency Circulation

Suspicious Cases of 'Sungeumkkang' Involving Buying and Reselling Pure Gold with Local Currency Detected

Yongin City in Gyeonggi Province has launched a focused crackdown on the fraudulent circulation of local currency. In particular, a special inspection will be conducted on the so-called 'pure gold kkang,' where people purchase gold using local currency and then resell it for profit.

On the 24th, Yongin City announced that it will carry out a focused crackdown on the fraudulent circulation of the local currency 'Yongin Y-Pay' until the 7th of next month. The city will analyze merchant payment data, specific industries, and frequently reported cases in advance, and directly visit stores detected through the 'abnormal transaction detection system' to verify whether fraudulent circulation is occurring.

The main targets of the crackdown are ▲using local currency in specific restricted industries such as precious metals, massage parlors, entertainment establishments, and immoral businesses ▲receiving or exchanging local currency without selling goods or providing services (so-called 'kkang') ▲paying with local currency for amounts exceeding actual sales ▲merchants refusing payment or treating local currency less favorably than other payment methods such as cards or cash.

The city is particularly focusing on the so-called 'pure gold kkang,' where the discount rate applied when purchasing local currency is exploited to buy pure gold cheaply and then resell it for profit. During the inspection period, special inspections and preliminary guidance will be conducted for 12 local precious metal shops suspected of fraudulent circulation. Businesses found to be involved in fraudulent circulation will face administrative actions such as cancellation of Yongin Y-Pay merchant registration and fines.

If cases of fraudulent receipt or use of local currency are identified, they can be reported to the Yongin City Civil Economy Division. A city official said, "We are carefully examining merchant payment data to ensure that local currency circulates properly," and added, "We will continue to conduct crackdowns to ensure that local currency circulates according to its original purpose."