A notice indicating that the store is a merchant for Onnuri gift certificates is posted at a traditional market in Seoul. The content of the article is unrelated./Photo=News1 /Photo=(Seoul=News1) Jihye Park.
The Ministry of SMEs and Startups will take strict measures against merchants involved in the illegal distribution of Onnuri gift certificates, including filing complaints.
On November 11, the Ministry announced that they have prepared measures to improve the illegal distribution of Onnuri gift certificates, focusing on high-revenue stores to check for issues and prevent recurrence.
According to the Ministry, they investigated 15 merchants from October 21 to 30, suspected of illegal distribution due to a monthly average revenue of over 500 million KRW. Violations were found in 13 of them. Seven were reported to judicial authorities, and administrative actions are underway for the remaining six.
A second investigation will be conducted from November 11 to 29, targeting 434 stores, including those with monthly sales of over 100 million KRW and suspected liquor retailers. Strict actions will be taken upon detecting violations.
The Onnuri Gift Certificate Improvement Task Force, launched on November 1, prepared the first set of improvement measures based on the results of the investigation conducted on high-revenue stores at the end of October.
They plan to solidify the prevention system using the Fraud Detection System (FDS) and strengthen administrative penalties for violations. Although the FDS of the Korea Financial Payment Comprehensive Cooperation Center has been used to detect large transactions, once a year inspection has been limited in identifying anomalies.
From now on, the period for on-site investigations of suspected illegal distribution detected by the FDS will be shortened to monthly intervals. Suspicious transactions noted during sales or receipt of gift certificates at banks will be immediately addressed starting November 11.
For merchants found guilty of illegal distribution, in addition to existing fines and merchant cancellation, regulations to recover undue profits obtained from illegal accumulation will be established. New restrictions on the registration period for merchants and participation in small business support projects will be introduced.
As a result, the restriction period for canceled merchant registrations will be extended from one year to three years, and a new restriction (five years) on participation in small business support projects will be implemented.
Measures to strengthen management of exchange limits through changes in the criteria for maximum exchange limits per merchant and sales recognition methods are also planned.
High-revenue merchants used illicit means such as canceling large transactions or engaging in inter-merchant circular transactions to rapidly inflate sales and reach the monthly maximum exchange limit swiftly.
The maximum exchange limit criteria will be determined annually through discussions with expert groups. Merchants’ monthly exchange limits will be gradually increased within a predetermined multiple. For merchants exceeding 100 million KRW, their sales performance will be reviewed every six months. If it falls short, the limit will be decreased.
Additionally, include checks to prevent fraudulent merchant registrations and strengthen after-the-fact management through regular inspections.
An interim registration procedure will be introduced to ensure that stores applying for merchant registration are actual operating stores within the designated areas, with improvements made to the application method.
To prevent recurrent cases of false registration identified during the investigation, such as operating “ghost stores” within market areas, a new requirement has been set: submission of utility usage history, like electricity bills, for one month following registration application to prove the store is genuinely operational before formal registration as a merchant.
Post-registration, collaboration with local offices of the Ministry of SMEs and Startups, small business corporations, and market merchant associations will ensure monthly checks of registered merchants and strengthening of post-management practices.
On November 8, not only the government, but also the National Federation of Merchant Associations, declared a commitment to eradicate the illegal distribution of Onnuri gift certificates with self-regulation efforts from merchants. The declaration involved 17 chapter presidents and approximately 70 merchants.
The federation plans to create and operate an illegal distribution monitoring team at 17 branches and establish independent monitoring teams in markets nationwide by the end of the month. These teams will report, verify, and crack down on illegal distribution. In cases of illegal distribution, they will enforce strict measures, such as prosecution and expulsion from the merchants’ association.
Won Young-jun, Head of the Small Business Policy Office and leader of the Onnuri Gift Certificate Improvement Task Force, stated, “We will establish and release a comprehensive plan for the management, system improvement, and activation strategies related to the operation of Onnuri gift certificates by the end of the year.”