Gyeonggi-do Province, cities and counties are cracking down on illegal currency distribution in Gyeonggi-do Province.
○ Joint crackdown by Gyeonggi-do and municipal governments to root out illegal distribution of local currency in Gyeonggi-do
- Operation of registration-restricted industries such as the gambling industry, and crackdowns on receiving local currency without providing goods;
- Penalties of up to 20 million won, such as illegal currency exchange, or up to 5 million won for refusal or obstruction of investigation into violations;
○ Prevent fraudulent distribution attempts by strengthening the detection function of abnormal transaction types in the local currency operation system.
Gyeonggi Province announced on the 8th that it will launch a joint crackdown on the eradication of illegal distribution of local currency in Gyeonggi Province for a month in March this year along with the city and county.
The crackdown was based on compliance with the Local Love Gift Certificate Act, which has been in effect since July last year, and was aimed at creating a fair and reliable local currency use environment.
The crackdown will be conducted by forming a crackdown team consisting of provincial and municipal officials, conducting preliminary analysis based on payment data and resident reports by franchisees, and visiting target stores to check whether they are illegally distributed.
Major types of crackdowns include ▲ operation of restricted registration industries such as the gambling industry ▲ acceptance of local currency without providing goods or services ▲ exchange of gift certificates above actual transaction value ▲ refusal to pay local currency or request additional money.
Through this crackdown, if an act of disturbing the distribution order of local currency is found, it can be punished under related laws.
Specifically, fines of up to 20 million won will be imposed for illegal sales and currency exchange, and fines of up to 5 million won will be imposed for refusing or obstructing investigations into violations. It also plans to take additional measures in case of serious cases, such as requesting an investigative agency.
Currently, Gyeonggi Province is continuously monitoring the Gyeonggi local currency operating system with operating agencies, detecting abnormal types such as repeated payments of more than a certain amount at certain franchises for a certain period of time and requesting police investigation.
Recently, a group of people who registered ghost franchises and made false payments in QR code-style local currency to collect incentives (10% of sales) was caught by the operating agency and local governments and were caught by the police.
The provincial government plans to strengthen the detection of abnormal transactions in close consultation with three operating agencies, KonaI, Korea Minting and KT, and proactively root out fraudulent distribution attempts by actively investigating actual transactions.
"QR code-based local currency is part of the case that only three of the province use, and the rest of the province cannot have the same method of illegal distribution," said Jo Jang-seok, head of the small business department.
Meanwhile, Gyeonggi Province has made various efforts to prevent illegal distribution of local currency in the 7th popular election, including on-site inspections of suspected local currency companies, on-site inspections of unfair discrimination transactions, and suggestions for related laws.
If you recognize or witness suspected cases of fraudulent distribution of local currency, you can report them to the Gyeonggi Call Center (031-120) or the department in charge of local currency in cities and counties.
