Naver asked police to investigate Toss for allegedly disrupting business operations, including distorting Naver's search rankings, according to reports on the 4th.
According to the financial sector and others, Naver earlier this year requested an investigation by the Gyeonggi Nambu Provincial Police Agency into Viva Republica, the operator of Toss. The alleged charges are obstruction of business and violation of the Act on Promotion of Information and Communications Network Utilization and Information Protection.
Naver took issue with Toss's apptech (Apptech) marketing. Apptech marketing is a method in which users receive cash-like rewards, including points, when they watch ads or complete check-ins within a mobile application (app).
Naver argues that Toss's "check-in mission" offered in its app distorts search rankings for Naver Store and Naver Place, harming consumers and businesses.
To complete Toss's check-in mission, users must find a specific restaurant on Naver and check menu prices or enter walking distances, among other tasks. Naver says this concentrates searches for certain keywords in its system and distorts search rankings.
After the referral, police first questioned Naver officials as reference witnesses. They then booked Toss officials and are expected to summon them for questioning soon.
A Toss official said, "We cannot provide details because police are currently investigating the matter."