Kakao recently decided to suspend the sale of online gift certificates from the Cultural Gift Certificate Corporation, which has been embroiled in controversy over the unauthorized operation of prepaid electronic payment methods.
On the 24th, Kakao announced that it had halted all sales of products related to cultural gift certificates on KakaoTalk Gift Giving. Kakao said, "It requested the supplier of the exchange certificate to stop sales."
The suspension of the cultural gift certificate sales is due to financial authorities urging consumers to be cautious when using cultural gift certificates. The Financial Services Commission, the Financial Supervisory Service, and the Fair Trade Commission conveyed warnings to consumers on the 20th, stating that cultural gift certificates were operating without being registered as a prepaid business.
Since the amended Electronic Financial Transactions Act was implemented in September of last year, the target for prepaid business registration has been expanded. The registration deadline specified by law was completed by the 17th for 16 companies that had submitted their registration applications.
However, the cultural gift certificate, despite having the online gift certificates classified as a prepaid electronic payment method and thus being a target for prepaid business registration, has not registered. The Financial Supervisory Service requested investigative authorities to verify facts, stating that confirmation was needed as the cultural gift certificate continued online sales without registration.
Companies that are not registered as prepaid businesses do not have the obligation for separate management of the full amount of prepaid deposits, meaning consumer protections do not apply. Even if bankruptcy, business suspension, or a reduction in affiliated stores occurs with the cultural gift certificate, refunds may not be possible as it remains unregistered with the prepaid business.
Prior to this, Naver Pay and NHN Payco ended their partnerships with the cultural gift certificates. Kakao also requested the supplier of the exchange certificate to halt the sale of cultural gift certificates to prevent further consumer damage. However, sales have been suspended, but gift certificates already received through KakaoTalk can still be used.