Gyeonggi-do to Conduct Intensive Crackdown on Illegal Circulation of Local Currency Until the 20th of Next Month

Joint Crackdown on Illegal Distribution in Cities and Counties
Targeting Illegal Receipt, Unauthorized Currency Exchange, Restricted Businesses, and Payment Refusal

Gyeonggi Province announced on the 25th that it will conduct a comprehensive crackdown until the 20th of next month to block the illegal distribution of Gyeonggi local currency and establish a proper usage culture.

Gyeonggi Provincial Government Building. Provided by Gyeonggi Province

The province has organized a crackdown team of 117 members to verify illegal distribution through phone calls and on-site inspections based on approximately 9,000 suspicious cases detected by the Fraud Detection System (FDS) and complaints received via the illegal distribution reporting center.

The main targets of the crackdown are Gyeonggi local currency affiliated stores within the province that receive local currency without selling goods or providing services, receive gift certificates through transactions exceeding actual sales amounts and exchange them, use local currency in restricted industries such as entertainment establishments and gambling industries, or treat local currency less favorably compared to cash when selling goods.

According to the Local Love Gift Certificate Act, a fine of up to 5 million KRW may be imposed if an investigation into violations is refused, obstructed, or evaded. Those who perform affiliated store duties without registering as an affiliated store will face penalties such as cancellation of store registration or administrative guidance depending on the severity of the violation.

Kim Kwang-deok, Director of the Regional Finance Division of Gyeonggi Province, said, “Through continuous inspections, we will enhance the reliability of Gyeonggi local currency and promote the healthy circulation of the local economy,” adding, “We hope that Gyeonggi local currency will help small business owners and neighborhood markets thrive.”

If you become aware of or witness any suspicious cases of illegal distribution of local currency, you can report them to the Gyeonggi Province call center or the local currency department of the city or county.