There are growing concerns that so-called "card kkaeng" advertisements, which used to appear as stickers on utility poles in the past, are now being blatantly displayed through portal sites, encouraging illegal private lending. The police have also decided to launch an investigation into these businesses, viewing such advertisements as a new form of card kkaeng scheme.
On December 21, when "card kkaeng" is entered into the Google search bar, the names of related businesses are automatically suggested in succession. These businesses entice consumers with phrases such as "guaranteed deposit within 3 minutes," "interest-free installment available," and "24-hour consultation."
Card kkaeng refers to the act of generating false sales at a credit card merchant using a credit card and receiving the remaining amount after deducting a commission. This constitutes a violation of the Specialized Credit Finance Business Act, which prohibits merchants from engaging in fictitious transactions, providing or brokering funds. Offenders may be subject to imprisonment for up to five years or a fine of up to 50 million won.
When contacting five card kkaeng businesses exposed on portal sites, it took less than a minute to receive a response. Many of these businesses were so busy that the sound of ringing phones could be heard continuously in the background. One business stated, "We pay out 90% of the transaction amount, and the deposit is completed within three minutes." Another explained, "After completing the payment using information provided via QR code or similar methods, a 'PIN number' for a gift certificate is sent. If you send us the PIN number, we consider the gift certificate purchased and deposit the cash to you."
The reason why illegal advertisements like card kkaeng are easily exposed on Google is that the ad review system is automated and lacks adequate filtering for the local language. If card kkaeng operators use new accounts, websites, or indirect wording, there is currently no way to block them.
There are also concerns that falling for such card kkaeng ads could lead to secondary damages, such as non-payment ("eat-and-run" scams) or personal information leaks. When asked whether their business could be trusted, one operator admitted, "There are occasionally such (eat-and-run) cases among businesses, so I understand why you might not trust us," but insisted, "We are a legitimate business advertising on Google and similar platforms, so that would never happen with us."
According to the National Police Agency, there were 1,800 cases of violations of the Specialized Credit Finance Business Act-the main charge in card kkaeng schemes-between the beginning of this year and last month, already surpassing last year's total of 1,794 cases. The police plan to launch an investigation into card kkaeng businesses. A National Police Agency official stated, "We will begin an investigation in consultation with the relevant departments."
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