The market size of the online gift giving service was KRW 2.998.3 trillion last year based on the top 7 companies.

The transaction amount of Kakao is KRW 2.53 trillion, accounting for 84.5% of the market share.

In fact, it dominates the market.

Kakao refunded 717.6 billion won to customers who purchased gifts over the past five years, and it is estimated that it earned up to 70 billion won in profit from refund fees.



SBS reported on 8News based on the data submitted by the Office of Rep. Yoon Kwan-seok of the Democratic Party of Korea from the Fair Trade Commission.

After that, the office of the legislature issued a press release, which was reported by many media outlets.

Kakao explained, "The refund amount of KRW 717.6 billion is fully reflected in the amount refunded 100% without any fees. The actual cancellation fee is significantly lower than KRW 71.7 billion."


▶ 10% gift refund fee…

Kakao with 70 billion won in 5 years (September 24, SBS 8 News)


Kakao's 'trick' in "The actual fee is small"

Kakao's explanation is correct.

There are two main types of refunds for gift giving.



1) When the <gift recipient> applies for a refund


2) When the <gift person> applies for a refund In case



1), the customer will receive a refund after deducting a 10% fee after 90 days of validity. can

In case 2), the customer will receive a 100% refund within 90 days.

Kakao is claiming that 70 billion won, which calculated 10% of the 700 billion won refund as a refund fee, reflects a large part of the refund amount of the '100% refunded gift buyer'.



Kakao did not respond to the request to distinguish between 1) and 2), that is, to confirm the refund amount of the '100% refunded buyer' on the grounds of "trade secret".

It was a rather difficult explanation, saying, “There is a limit to which it is difficult to distinguish five-year data based on the validity period.”

Since it did not disclose accurate information, it was forced to report that the refund fee was estimated at up to 70 billion won.



The key is 'the right to request a refund'

The key is why the person who received the gift on the basis of 90 days does not have the right to request a refund. According to Article 7 (refund) of the Standard Terms and Conditions for New Type Gift Certificates revised by the Fair Trade Commission last year, "the final holder of the new type gift certificate has the right to request a refund". The ultimate bearer is the recipient of the gift. The Fair Trade Commission stipulated that "a buyer may request a refund only if the final holder cannot request a refund." Kakao limited the rights of the final holder by setting an arbitrary standard of 90 days.



In response, Kakao explained, "According to the terms and conditions, customers can receive a full refund of the purchase amount within 7 days from the purchase date of the new type gift certificate." He added, “We have set an expiration date to prevent the misuse of cash in the market.” I would like to use the gifting method of Kakao, where most of the products are small amounts, for the purpose of cashing, so-called 'Gang', and I would like to lose the will to cash out after 90 days of validity, but I will not discuss this.



In the last 5 years, how many refund requests have been made by buyers in terms of the refund amount of 'Gift as a gift'? If the number of requests from buyers is far less than the number of requests for refunds from recipients, Kakao's logic of restricting the 'recipient's right' for 90 days for the 'buyer's right to refund' becomes difficult. In common sense, 'the person who made the gift' means 'the product that was given as a gift' Requests for refunds are very limited.


"A powerful alarm to the society"


Kakao is suffering from the aftermath of relentless business expansion.

Founder Kim Bum-soo, chairman of the board of directors, announced on the 14th that the coexistence plan was "recently pointed out as a powerful alarm that is ringing in society," and said, "It is a time for radical change to achieve socially responsible growth by daringly abandoning the growth method over the past 10 years."

However, Kakao's response to the fee issue is disappointing.

The issue of fees, including refunds for the 'Gift as a Gift' service, is also missing from the contents of this win-win plan.



After the report, Kakao explained to the effect that 'the refund fee of 70 billion won was incorrect'.

It was a reaction prepared from the beginning.

"Why does Kakao limit the gifts I received?" was Kakao's response to the voices of users.

Pointing to the moon, only the direction of the finger is pinched.