As the number of secondhand marketplace users grows rapidly in South Korea, related disputes are surging in tandem. Recent cases increasingly extend beyond individual scams to disputes over accountability between platforms and consumers, fueling growing controversy.
An analysis by Rep. Lee Yang-soo of the ruling People Power Party, a member of the National Assembly's Legislative and Judiciary Committee, based on data from the Korea Consumer Agency found that 175 consumer relief claims related to secondhand trading platforms were filed last year. The figure more than doubled from the previous year and represents a roughly tenfold increase compared to 2022.
The nature of complaints is also shifting. Beyond simple fraudulent transactions, consumer grievances are now concentrated on delayed or absent platform responses during payment cancellation and refund processes.
"I Returned the Item, but Where's My Money?"—New Types of Disputes Spread
The pattern of actual damages is changing as well. While most past cases involved direct scams between individuals, disputes involving platforms that mediate transactions are now on the rise.
The scale of losses is also growing. Consumer A purchased a laptop worth 1.8 million won (approximately $1,300) through a secondhand platform and canceled the transaction by mutual agreement with the seller, but received no meaningful response despite multiple requests to the platform to reverse the card payment.
Another user, Consumer B, purchased a figurine set worth 1.2 million won (approximately $870) through a secure payment system. After returning the product at the seller's request—who claimed the settlement had been placed on hold—Consumer B was never refunded.
By platform, the most consumer relief claims filed over the past five years were against Bungaejangter with 133 cases, followed by Danggeun Market with 125 and Jungonara with 77.
Danggeun Market saw claims surge from just three in 2021 to 88 last year. Bungaejangter's claims also jumped more than tenfold over the same period, from five to 57.
Fraud Cases and Losses Both Soar—"Platforms Must Take Greater Responsibility"
Secondhand transaction fraud itself is rising rapidly. According to data obtained by Rep. Lee from the National Police Agency, direct-transaction fraud cases increased from approximately 80,000 in 2021 to 120,000 last year. Total damages more than tripled, ballooning from 257.4 billion won (approximately $186 million) to 874.1 billion won (approximately $632 million).
As the market expands, revenue gaps among platforms are also becoming more pronounced. Last year, Jungonara posted revenue of just 11.8 billion won, while Danggeun Market recorded 189.1 billion won and Bungaejangter logged 44.9 billion won, both rapidly scaling their operations.
However, critics say consumer protection measures have not kept pace with the market's growth. "The secondhand trading market is snowballing in size, but the safety net to protect consumers has been virtually neglected," Rep. Lee said. "Concrete consumer protection measures, including strengthening secure payment systems, must be put in place so that platforms cannot evade responsibility."