When a street vendor selling traditional snacks like hotteok demands cash and refuses a credit card payment, consumers have clear legal remedies under South Korean commerce regulations, according to tax and legal authorities.
Under South Korea’s Specialized Credit Financial Business Act, registered credit card merchants cannot refuse card transactions or treat credit card users unfavorably compared to cash customers, according to the National Tax Service. Violating this mandate carries severe statutory penalties, including up to one year in imprisonment or a fine of up to 10 million won, as outlined by legal guidelines.
Legal Obligations and Merchant Rules
Refusing to sell goods or provide services simply because a customer intends to pay with plastic is strictly prohibited by law.
Consumers who face payment rejections at registered establishments have the right to file an official complaint. According to legal procedures, reports must be submitted within one month of the date the transaction was refused.
Filing a Complaint with Tax Authorities
Aggrieved customers can submit their evidence directly to government tax offices. The National Tax Service allows filings to be processed through the Commissioner of the National Tax Service, regional commissioners, or local district tax office heads.
However, enforcement depends heavily on the vendor’s registration status. According to legal expert Jeong Sun-hwa of Jeong Sun-hwa Law Office, legal action is difficult to enforce if the business operates as an exempt micro-enterprise not required to join the credit card merchant network, or if the shop lacks merchant registration entirely.