"Trying to Save a Penny"… Happy Money Victims Take to the Streets

Happy Money's Financial Soundness Deteriorates... Refund Uncertain
"In the Worst Case, It Should Be Included in Relief Measures"

“I just wanted to save that money to buy books for our kids...” (Kim Mo, 41 years old)

As the TMON and WEMAKEPRICE unpaid settlement crisis spreads to cash-equivalent gift certificates, those who purchased Happy Money gift certificates expressed dissatisfaction, saying, “It is extremely difficult for victims to receive relief.” Fifteen members of the Happy Money victims’ group participated in the rally held that day.

At the rally held on the 2nd near the Financial Supervisory Service in Yeouido, Seoul, Park Hyun-min, the interim representative of the Happy Money victims’ group, stated, “Currently, the focus is on the TMON and WEMAKEPRICE incidents, so the exact scale of the Happy Money damage has not been confirmed,” adding, “The Happy Money issue should not be seen as a separate matter. In the worst case, the Financial Supervisory Service should include Happy Money victims in the relief measures.”

Park explained, “Although we have not internally assessed the damage in detail, it is estimated to be several billion won,” and added, “Corporate businesses within the victims’ group have much larger damages, basically ranging from tens of millions to hundreds of millions of won.”

"Trying to Save a Penny"… Happy Money Victims Take to the Streets

After the Tmon and Wemakeprice incident made it impossible to use Happy Money gift certificates, on the afternoon of the 2nd, citizens who purchased Happy Money gift certificates held an "Umbrella Rally" in front of the Financial Supervisory Service in Yeouido, Seoul, urging for refund and relief measures.
[Image source=Yonhap News]

Happy Money victims unanimously said, “We are ordinary people who entered ‘sangtech’ (gift certificate + asset management) to save even a single penny.” Mr. A from Anyang, Gyeonggi Province, lamented, “I usually stockpile gift certificates and use them at affiliated places like cafes and movie theaters. Although the amounts are small, they add up over time,” and continued, “I recently purchased gift certificates to pay my apartment management fees, and the total charged amount reached 1.7 million won, but now I cannot use this money anywhere.”

Mr. B said, “I have used them at movie theaters and other places for a long time because you can buy them at up to a 10% discount,” adding, “I bought a lot during TMON’s last discount sale from the 19th to the 21st of last month, so about 5 million won is currently tied up.”

The participants in the rally also demanded preventive measures from financial authorities. Mr. C emphasized, “I think we won’t get the money back. Money is secondary; we gathered to improve the system,” and added, “These incidents keep happening and could happen again, but the government’s failure to act is the problem.” Mr. D raised his voice, saying, “I’m not asking for a solution with taxpayers’ money, but it’s unacceptable that even the representatives are hiding and doing nothing.”

Immediately after the TMON and WEMAKEPRICE unpaid settlement crisis, various online and offline merchants such as restaurants and shopping malls blocked Happy Money payments. Happy Money Inc., the issuer of Happy Money, has also effectively stopped refunding gift certificates and Happy Cash (electronic payment recharge funds). Until just before this incident, these gift certificates were sold on TMON and WEMAKEPRICE at about a 7-8% discount.

Happy Money Inc. is an unregistered company not subject to financial authorities’ supervision and does not have any mechanisms such as payment guarantee insurance to protect gift certificate payments. Financially, the situation is even more serious. The company has been in a state of complete capital erosion for years, with liabilities exceeding assets. A Financial Services Commission official said, “Companies like Happy Money that are not registered with the FSC cannot be supervised or managed by financial authorities under current law.”

Although Happy Money gift certificates have effectively become “worthless,” refunds through financial institutions are expected to be difficult. The electronic payment gateway (PG) industry interprets that there is no legal obligation to refund gift certificates with serial numbers (PIN numbers) under current law. According to Article 17 of the Specialized Credit Finance Business Act, if “goods are not sold or services are not provided,” PG companies are obligated to cancel payments and issue refunds. However, the industry interprets that if consumers have received the gift certificate’s PIN number, it is considered that “goods are sold or services are provided.”

A PG industry official said, “In the past, physical gift certificates were sent, but recently transactions have been conducted by sending the gift certificate’s PIN number to the contact number,” adding, “If the PIN number is received, there is a possibility it is considered that goods or services have been provided.”