If you are caught doing so-called "gift certificate cashing" with Onnuri gift certificates, a penalty surcharge equal to three times the unjust gains will be imposed. A sales threshold for Onnuri gift certificate member stores was also newly established.
The Ministry of SMEs and Startups (MSS) said on the 9th that the Cabinet approved an amendment to the Special Act on the Promotion of Traditional Markets and Shopping Districts (Traditional Market Act).
The amendment is characterized by a major overhaul of the gift certificate management system to better support Onnuri gift certificates in faithfully realizing their original purpose of revitalizing traditional markets and local commercial districts, and to address institutional shortcomings regarding illicit distribution of gift certificates. The amendment passed at the Cabinet meeting that day will take effect six months after promulgation.
The amendment introduces a member store sales threshold to prevent Onnuri gift certificates from being used excessively at specific member stores and to ensure they are operated with a focus on vulnerable commercial districts such as small merchants and traditional markets.
If a member store's sales or Onnuri gift certificate redemption amount exceeds a certain threshold set by presidential decree, new member registration or renewal of existing membership will be restricted, and even already-registered member stores will have their membership canceled if they exceed the threshold. However, existing registered member stores will retain their membership status until the current validity period expires to ensure business predictability.
The ban and penalties for illicit distribution of Onnuri gift certificates will also be strengthened. Onnuri gift certificates have supported increased sales for traditional markets and small merchants and contributed to revitalizing local economies, but various problems have been raised during their operation.
Representative examples include: ▲ a member store accepting gift certificates outside its registered premises and then redeeming them ▲ reusing received gift certificates at another member store ▲ colluding with a third party to distribute gift certificates illicitly ▲ non-member stores handling gift certificates and users reselling them, among other cases exploiting legal loopholes.
The amendment clearly defines such illicit distribution acts in law, clarifying the legal basis for crackdowns. Depending on the severity of the illicit distribution, fines of up to 20 million won or criminal fines will be imposed, and if illicit distribution such as illegal cashing is detected, a penalty surcharge of up to three times the unjust gains may be imposed.
In particular, the period of support suspension and the re-registration restriction period applied when a member store's registration is canceled will each be extended to a maximum of five years, up from the previous maximum of three years and one year, respectively, to strongly block repeated attempts at illicit distribution.
The member store management system will be reorganized to prevent fraudulent registrations and strengthen market oversight. New member stores will first be temporarily registered under "conditional registration," and official registration will be finalized only after submitting documents within 30 days that can verify actual operations. Failure to submit will result in cancellation of registration. In addition, the status of member store registrations will be transparently disclosed through the MSS website and other channels.
The fire mutual aid system, previously limited to traditional markets, was expanded to shopping districts and alley-type shopping districts, strengthening the disaster safety net for merchants in shopping districts and alley-type shopping districts vulnerable to fires.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "This amendment is a comprehensive measure that improves long-standing issues surrounding Onnuri gift certificates and provides a denser and stronger response to illicit distribution," adding, "We will continue to supplement and strengthen the management system so that Onnuri gift certificates, as originally intended, provide practical help to the sales of merchants in traditional markets and local commercial districts."