[Luxury World] "We Buy Department Store Receipts for 500,000 Won"... The World of 'Fake VIPs'

Transaction Records Worth Tens of Millions, Purchased for Tens of Thousands
Many Inquiries from People Trying to Raise VIP Status
Department Stores 'Headache'... "Strengthening Monitoring"

'Urgently wanted. Lotte Department Store performance 10 million KRW, seeking 5%. Cash receipt X. Contact 010-칠XX-XX육X.'

This is a post frequently seen on secondhand sites or internet communities around the end of the year. Every year, as the department store industry approaches the adjustment of the 'Department Store VIP System' tiers, which offers various benefits to customers with high purchase performance at year-end and early next year, transactions buying and selling department store purchase performance are flooding the market.

According to the distribution industry on the 8th, from December to January every year, department stores such as Lotte, Shinsegae, Hyundai, and Galleria sum up customers' annual consumption performance and notify VIP (valued customers). Lotte Department Store sums up consumption performance from December to November of the following year, so the notification timing is about a month earlier than other department stores.

This year, notification texts are scheduled to be sent around mid-December, and VIP benefits will be maintained from January next year to December the following year. Shinsegae Department Store and Hyundai Department Store sum up performance from January to December and notify VIP selection in January next year. The VIP benefit start date is from February to January of the following year.

Department store VIP tiers are divided according to their own established criteria. The tier criteria vary greatly depending on the department store, generally ranging from 3 million KRW to 150 million KRW. Lotte Department Store has 5 tiers, Shinsegae Department Store has 7 tiers, and Hyundai Department Store has 6 tiers. The top and second-highest tiers usually require purchases of about 100 million to 250 million KRW.

Performance transactions occur when one fails to meet the desired tier performance during this period. Typically, the transaction method involves a seller who wants to sell performance changing the payment, thereby transferring purchase performance (points) to the buyer. In cases where post-accumulation is not allowed, the buyer is found first, and then the payment change is processed.

For example, if a customer has purchased 50 million KRW at Hyundai Department Store over a year, they will be applied the 'Sage' tier (between 30 million KRW and 65 million KRW). If they have an additional 15 million KRW in performance, they can receive the 'Jasmine' tier starting at 65 million KRW. Above that are 'Jasmine Blue' (100 million KRW) and the highest tier 'Jasmine Black' (150 million KRW). Receiving the Jasmine tier grants valet service, discount coupons, and access to the Jasmine exclusive lounge. Additionally, customers can enjoy more cultural activities including holiday gifts. Valet service and exclusive lounges are important benefits for VIPs. The Sage tier offers free parking and access to the Sage exclusive lounge.

The price is usually determined as a percentage (%) of the desired performance. Buyers or sellers propose a commission between 3% and 6% in posts. For example, 'Lotte Department Store performance 10 million KRW, seeking 5%' means the buyer will pay 5% of 10 million KRW, which is 500,000 KRW, to purchase that performance. The commission rate tends to rise to the high 5% range as the year-end approaches because more people try to fill remaining performance before the summation period ends. If '현영' (cash receipt) is added, the percentage increases by about 1%.

Such performance transactions are strictly prohibited by department stores. Although less frequent than before due to reduced luxury consumption, some resellers profit not only from product sales but also from selling purchase performance. To prevent this, department stores strictly forbid post-accumulation and exclude customers from VIP selection if excessive or abnormal sales are detected in specific brands.

However, it is not easy to completely filter out customers involved in fraudulent transactions. An industry insider explained, "We strengthen monitoring every year and try to thoroughly verify identities, but it is difficult to catch all customers who deliberately try to deceive."