Gokseong County to Crack Down on Illegal Distribution of Simcheong Gift Certificates

May 7 to 28...
Crackdown on "Sangpumgwon-kkang" and Proxy Purchases

Poster for Crackdown on Illegal Distribution of Simcheong Gift Certificates. Provided by Gokseong County

On April 30, Gokseong County in South Jeolla Province (Governor Cho Sangrae) announced that it will conduct a crackdown on the illegal distribution of Gokseong Simcheong Gift Certificates for the first half of 2025, starting from May 7 for a period of three weeks.

The inspection will cover the period from November 2024 to May 2025. During this period, approximately 15.7 billion won worth of gift certificates were sold. In the first half of this year, 5.4 billion won in livelihood support funds and 4.1 billion won in agricultural and fisheries subsidies, totaling 9.5 billion won, were distributed as Gokseong Simcheong Gift Certificates. With the sharp increase in the volume of gift certificates in circulation, the county aims to carry out intensive inspections to establish a sound distribution order.

Representative cases of illegal distribution include: ▲“Sangpumgwon-kkang” (exchanging gift certificates for cash at affiliated stores without selling goods or providing services), ▲proxy purchases by family members or acquaintances, ▲false registration of affiliated stores, and ▲secondhand trading. The county will form inspection teams with its operating agency and focus the crackdown on vulnerable types, such as businesses with large or repeated transactions, newly registered affiliated stores, and stores conducting large-scale currency exchanges.

If illegal distribution is detected, on-site guidance will be provided and, depending on the severity, penalties may include cancellation of affiliated store registration and fines of up to 20 million won. Any unjust gains may also be recovered.

Governor Cho Sangrae stated, "Since Simcheong Gift Certificates are issued and operated to revitalize the local economy, I hope that this crackdown period will become a time when affiliated store owners and users work together to foster a sound local currency culture."