Fraud and trading of prohibited items on the rise

Danggeun Market shuts down phone support; replies take up to three days

Joonggonara effectively left unmanaged; trading of prohibited items still rampant

#1. Mr. A, an office worker in his 30s, logged on to Danggeun Market last month to buy an electronic device priced at nearly 400,000 won. Spotting a listing offering a brand-new unit for a full 50,000 won less, he told the seller, Mr. B, that he wanted to buy it. Mr. B's 'manner temperature' was 60 degrees Celsius. When Mr. B, who had a solid transaction history and glowing reviews, pressed him, saying, "I'm already getting lots of inquiries; if you don't pay right now I'll move on to the next person in line," Mr. A immediately wired 350,000 won. But after saying only that he would bring the item over, Mr. B has since disappeared.

#2. Ms. C, a homemaker in her 40s, was shocked to learn recently that her teenage child had bought e-cigarettes through Joonggonara. After stumbling on the cigarettes among the child's belongings and pressing them on where they came from, her child, D, answered, "I bought them on Joonggonara and had them shipped." When Ms. C logged on to Joonggonara and searched for 'cigarettes,' dozens of listings were already on sale or marked as sold.

All manner of crimes are rampant on secondhand trading platforms such as Danggeun Market and Joonggonara. Critics say these platforms, however, are focused solely on bulking up while neglecting crime prevention, response and recurrence prevention.

According to the Korea Internet & Security Agency on the 34th, the secondhand trading market, worth 4 trillion won in 2008, surpassed 24 trillion won in 2021 and is projected to surge to 43 trillion won this year. As transaction volume grows, crimes such as fraud have risen every year, reaching 100,000 cases last year. Adding in trades of prohibited items and crimes targeting minors, the figure is expected to climb even higher.

Yet the secondhand platforms are leaving their flimsy operating systems as they are. Danggeun Market offers no phone support, so even when a user falls victim to a crime, there is no immediate response. It merely repeats the excuse that 'phone support involves cumbersome procedures for verifying member identity.' Inquiries submitted through the app can take up to three days to get a reply, and even that is currently suspended.

Because secondhand trading has become a daily necessity, users say they have no choice but to keep using these platforms reluctantly, even knowing that crimes occur frequently. Danggeun Market, for its part, warns users who use harsh language toward a counterparty after a transaction goes wrong that, "separately from the transaction issue, you may receive a 'bad manners warning' or 'usage restriction.'"

Danggeun Market user Kim Ye-eun said, "A little while ago I was scammed trying to buy a phone on Danggeun Market. I couldn't get any help from Danggeun at all, and when I reported it to the police, all I got was a reply that it is still being processed. I'd love to just delete the app, but with no real alternative, I can't even do that."

A Danggeun Market official responded, "With 19 million monthly users posting an average of more than 15 million listings a month, it is realistically difficult to handle every inquiry by phone," adding, "We make our guidelines as easy and detailed as possible, and we use a modular response process and technology to quickly provide the solutions users need."

The official continued, "We currently have a variety of safeguards in place to prevent fraud. In addition, even if a user who has been sanctioned signs up again with a different phone number, our internal system identifies them as the same person and immediately imposes usage restrictions," adding, "By combining technical measures with active cooperation with investigators, we will work to ensure there are no blind spots in user protection."

On Joonggonara, the trading of prohibited items is a serious problem. Prohibited items such as medicines, alcohol and cigarettes can be found easily with a search, prompting criticism that the site is a blind spot for minors. Prohibited items are traded slyly through posts phrased as questions such as 'How do I use product XYZ?' The seller posts what looks like an informational question, discreetly adds contact information and steers readers toward a sale. Alcohol and cigarettes are also traded through listings that claim to be selling only the case.

Under current law, alcohol and tobacco may not be traded online by individuals without a sales license. Violations are punishable by up to three years in prison or a fine of up to 30 million won. Yet countless users on Joonggonara are still selling and buying them. The fact that sales listings from days and even months ago remain up is evidence that Joonggonara has effectively left prohibited-item trading unchecked.

Experts point out that as the scope of secondhand trading expands from cheap household goods to luxury items, apartments, cars and even part-time jobs, and as transaction values grow without limit, more proactive measures by these companies are urgently needed.

Attorney Shin Dong-woo of DAEON Law Firm said, "Platform operators can also bear legal liability for criminal acts that occur during secondhand transactions on their platforms," adding, "If a platform operator fails to take appropriate safety measures to protect users or fails to fulfill its duty of management, it may be liable for damages, and in particular, if it knew of criminal activity and turned a blind eye, it could be found guilty of aiding and abetting."

He stressed, "Platform operators must carry out appropriate measures or fulfill their duty of prevention to stop criminal acts taking place on their platforms."

Newsway Reporter Yang Mi-jeong