On the 21st, the first day for applying for the consumption coupon for economic recovery, the government announced it would punish fraudulent distribution activities after several cases of reselling for cash occurred on used trading platforms.
The Ministry of the Interior and Safety noted that as the distribution of the consumption coupon for economic recovery becomes full-scale, it would strengthen the management of fraudulent distribution activities to ensure that the consumption coupons are used in the market as originally intended for consumption. Fraudulent distribution includes cashing in consumption coupons through transactions between individuals or cases where merchants of local love gift certificates receive the certificates without selling goods or exchange them for a value exceeding the actual transaction amount.
The Ministry of the Interior and Safety stated that in cases of cashing in through transactions between individuals, it would require the return of all or part of the coupon support amount under the laws concerning the management of subsidies. There may also be future restrictions on subsidy payments along with additional penalties.
Sellers who illegitimately profit from using consumption coupons are also subject to punishment. If a seller pretends to conduct a transaction without actually selling goods or processes transactions using credit cards for amounts exceeding actual sales revenue, they could face up to three years in prison or fines of up to 20 million won under the Act on the Registration of Credit Finance Business. If merchants receive or exchange gift certificates without providing goods or services, or for amounts exceeding the actual transaction value, they could face cancellation of their merchant registration and fines of up to 20 million won under the Local Love Gift Certificate Act.
Online used trading platforms, such as Junggonara, Carrot, and Bungeejangteo, have taken measures to restrict the use of specific search terms like 'consumption coupon' and 'economic support fund' at the request of the Ministry of the Interior and Safety, and delete posts containing related words.
The Ministry of the Interior and Safety stated that it requested local governments to operate 'fraudulent distribution reporting centers' by region to regularly crack down on merchants and strengthen monitoring to prevent transactions between individuals in online communities.