Claims have been raised that follow-up measures were insufficient regarding the illicit distribution of Onnuri gift certificates that occurred at traditional markets in Daegu last year. Suspicions also surfaced that the use of Onnuri gift certificates in Daegu remained abnormally high even after the incident.
Jang Cheol-min of the Democratic Party of Korea said on the 23rd at the National Assembly Trade. Industry Energy. SMEs. and Startups Committee audit of agencies under the Ministry of SMEs and Startups (MSS) that follow-up actions related to the so-called "garlic shop Onnuri scam" were inadequate. Jang raised suspicions about the "garlic shop Onnuri scam" at last year's audit of agencies under the MSS.
Jang said, "It has been a year since I questioned the (illicit distribution) of Onnuri gift certificates at last year's audit, and looking at the post-incident measures, one person at the garlic shop was indicted, and no other notable actions were taken."
Suspicions were raised that a vegetable shop in Paldal New Market in Daegu, one of the top three companies nationwide in Onnuri gift certificate sales last year, was systematically involved in the illegal distribution of Onnuri gift certificates. Of the three, only one garlic shop was actually in operation, while the others were so-called "paper companies," and under the names of three affiliated stores they converted an average of 19.2 billion won in Onnuri gift certificates into cash each month and pocketed about 1 billion won per month.
Jang said, "No investigation was conducted into the Korean Federation of Community Credit Cooperatives (KFCC) branch (in the area) where they exchanged about 19.2 billion won." He added, "When I asked the police why they did not investigate, they said it was because 'SEMAS did not file a complaint or express an opinion,'" and explained, "The National Federation of KFCC should also have reviewed matters related to the branch in question."
Financial institutions convert affiliated merchants' Onnuri gift certificates into cash and receive a 1.3% fee on the recovered Onnuri gift certificates.
Jang also pointed out that even after last year's incident, the use of Onnuri gift certificates in the Daegu area was higher than in other regions. According to data Jang received from the Korea Small Enterprise and Market Service (SEMAS), the average Onnuri gift certificate payment per merchant as of July this year was highest in Daegu at 3.51 million won. Seoul (2.63 million won) and Busan (2.12 million won) followed.
Jang said, "At last year's audit, we revealed that an enormous volume of Onnuri gift certificates was used and distributed in Daegu, and this year shows a similar pattern," adding, "Daegu's use of Onnuri gift certificates ranks a dominant No. 1, ahead of Seoul, which has the largest population."