Full-Scale Launch of the 'Safe Guarantee Project' Next Month
Building a Trust Infrastructure for Secondhand Transactions to Prevent Fraud
Integration of Cafe and App Data, Enhanced Seller Verification
Full Implementation of Safe Payment, Safe Compensation Program Up to 1 Million Won
Plans to Introduce Safe Delivery and More After Project Stabilization
"Without bold decisions, survival will be difficult. We are aiming to transform the system so that fraud becomes virtually impossible."
Choi Inwook, CEO of Junggonara, made this statement during an interview with Asia Economy at the Junggonara headquarters in Gangnam-gu, Seoul, on June 4. Choi emphasized, "The core asset of the used goods market is trust," and added, "Fraud in secondhand transactions is the biggest obstacle not only for Junggonara but for the entire industry." The 'Safe Guarantee Project' is his solution born out of this awareness of the problem.
This fall, Junggonara has announced sweeping changes. The project will mobilize a full range of institutional and technological measures, including: ▲unifying the operation of the Naver Cafe and the proprietary application, ▲strengthening seller real-name verification (KYC), ▲implementing safe payment as the default, ▲introducing a Safe Compensation Program of up to 1 million won, and ▲adjusting transaction fees. The plan is to shed the negative image of being a 'hotbed of fraud' that has long followed the cafe-centric operation, and to reinvent the platform as a single, trust-based service with enhanced integration between the cafe and the app. Choi stressed, "This project is the largest campaign in Junggonara's 21-year history and will be a comprehensive innovation."
The Origin of Fraud: The 'Cafe'... Overcoming Structural Limitations
Currently, Junggonara maintains a dual-platform structure in which the Naver Cafe and its own app operate independently without integration. The cafe boasts a much longer history, a larger user base, and higher transaction volume than the app, but it has also been perceived as the main source of fraud. Choi admitted, "Because we have long used the Naver Cafe format instead of our own platform, there have been clear limitations in terms of authority."
To address these structural constraints, Junggonara will further strengthen the integration of the two platforms. Choi explained, "The cafe became the main stage for fraudsters due to the use of multiple IDs and anonymity," and added, "We will significantly enhance seller real-name verification (KYC)." Going forward, once a user completes real-name verification with a single ID in the app, their verification information and membership level will be applied to both platforms. Currently, users must post product listings separately on the cafe and the app, but in the future, a single registration will automatically post to both platforms.
Junggonara also plans to raise the verification completion rate of unverified cafe members to over 50% within this year. Choi said, "For those who have completed real-name verification, especially sellers with high loyalty, we will offer benefits such as faster settlements, mileage accumulation, and fee discounts based on transaction history and trust score starting next year."
In addition, the company plans to block the use of external links altogether. Fraudulent sellers operating multiple IDs have frequently used phishing and smishing tactics by sending fake payment links disguised as similar domains such as 'junggonaranara.com' or 'naverpay.com' through posts or app chats, resulting in numerous victims. Choi expects that this measure will reduce phishing and smishing fraud by more than 80%.
Excessive Seller Advantage... Correcting the 'Unlevel Playing Field'
The biggest issue Choi identified was the 'seller-centric structure.' Because most procedures?such as providing product information, inducing payment, and setting transaction conditions?were centered around sellers, buyers were relatively unprotected. Even when victims received something like a brick after sending money, buyers had few ways to respond. Since 70-80% of all transactions are non-face-to-face, ensuring payment security has been a core challenge for Junggonara.
To address this imbalance, Junggonara will strengthen buyer protection through the 'full implementation of safe payment' and the 'Safe Compensation Program of up to 1 million won.' Although safe payment functions already existed, many users still transferred money directly to the seller's personal account. Junggonara aims to reduce the rate of advance payment scams in the app by over 95% within this year and to maintain a 0% fraud rate in transactions based on safe payment.
Choi stated, "It is virtually impossible for fraud to occur within the app, as the escrow-based safe payment structure is already in place," and added, "We will also provide notifications in the cafe regarding the use of safe payment at the payment stage." He continued, "For fraud victims, we will offer compensation of up to 1 million won per case."
However, as the seller-biased structure is improved, the current purchase fees charged to buyers will be partially adjusted. The company plans to minimize the burden on buyers. For small transactions (20,000 won or less), the fee will be waived, and for large transactions (over 7 million won), the lowest fee rate will be applied. Choi acknowledged, "There are concerns about losing existing users, but in the long term, this will suppress fraudulent activity and increase trust in transactions."
The Future of Safe Guarantee... Expanding to 'Delivery and Warranty'
Once the Safe Guarantee Project is on track, Junggonara plans to introduce additional services. Since 84% of all transactions are based on parcel delivery, the company is considering building a 'Safe Delivery' system as early as this year and integrating various delivery services?such as walking, quick, and freight?within the app.
In addition, for high-value and sensitive items such as used phones and home appliances, the company has entered early discussions on incorporating quality assurance and after-sales service (A/S) functions through collaboration with insurtech companies. Choi predicted, "Once this project is established and app traffic increases, there will be significant potential to expand from new mileage-based services to premium delivery and B2B advertising businesses."
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