Complaints related to third-party payment systems on South Korea’s secondhand online marketplaces surged nearly tenfold over three years, government data showed Tuesday.
A total of 175 complaints were filed in 2025, up from 18 in 2022, according to the Korea Consumer Agency. The figure also marked a sharp increase from 82 in 2024, data released by Rep. Lee Yang-soo of the main opposition People Power Party showed.
The complaints were largely tied to disputes involving “safe payment” systems, a type of escrow service in which platforms temporarily hold funds until buyers confirm receipt of goods. The systems are designed to protect users from fraud, with compensation capped at up to 1 million won ($664) in some cases, including on Joonggonara.
By platform, Bungjang recorded the most complaints over the past five years at 133, followed by Karrot with 125 and Joonggonara with 77. Karrot saw the sharpest increase, with complaints rising to 88 last year from just three in 2021.
The figures likely understate the scale of fraud, as safe payment systems do not cover direct transactions between buyers and sellers.
Citing data from the National Police Agency, Lee said cases of fraud in direct secondhand transactions reached about 120,000 in 2025, up from 80,000 in 2021. The total value of such scams more than tripled to 874.1 billion won from 257.4 billion won over the same period.
“The secondhand market is expanding rapidly, but consumer protection measures have not kept pace,” Lee said. “Stronger safeguards, including improvements to safe payment systems, are needed to ensure platforms are held accountable.”
South Korea’s online secondhand market has grown quickly in recent years. Major platforms recorded a combined 23.4 million monthly active users as of August, up 32.4 percent from 17.66 million in August 2021, according to data from WiseApp Retail.
minsikyoon@heraldcorp.com
