FSC, Financial Supervisory Service and Korean National Police Agency join campaign

Shinhan Financial Group said Tuesday it is joining forces with financial regulators and the Korean National Police Agency to combat "no-show fraud" targeting small business owners, and will provide free insurance covering losses of up to 3 million won ($2,230) to some 150,000 merchants on the public food delivery platform Ddaenggyeoyo.

The group launched a month-long joint campaign Monday with the Financial Services Commission, the Financial Supervisory Service and the Korean National Police Agency to prevent no-show fraud and promote sound transaction practices.

Shinhan Financial Group Consumer Protection Head Park Hyun-joo (second from left) presents an insurance policy to a merchant representative at a campaign signing ceremony Monday. The group launched the joint initiative with the Financial Services Commission, the Financial Supervisory Service and the Korean National Police Agency to combat no-show fraud targeting small business owners. [Shinhan Financial Group]
Shinhan Financial Group Consumer Protection Head Park Hyun-joo (second from left) presents an insurance policy to a merchant representative at a campaign signing ceremony Monday. The group launched the joint initiative with the Financial Services Commission, the Financial Supervisory Service and the Korean National Police Agency to combat no-show fraud targeting small business owners. [Shinhan Financial Group]

The campaign was launched in response to a string of no-show fraud cases in which scammers impersonate public institutions or companies to place large orders from small businesses before disappearing without payment. Shinhan Financial plans to conduct education and promotional activities through its online and offline channels in cooperation with financial regulators and the police agency.

As part of the initiative, Shinhan EZ Non-life Insurance has launched what it calls the country's first "no-show fraud victim support compensation insurance." Shinhan Bank will provide the policy free of charge to approximately 150,000 merchants registered on the Ddaenggyeoyo delivery platform, extending the group's shared-growth finance efforts to reduce fraud losses among small business owners.

Merchants who consent to enrollment will be covered for one year from their registration date. If a no-show fraud incident occurs, they can receive a victim support payment of up to 3 million won, subject to police investigation results.

Shinhan Financial will also inform small business owners about common no-show fraud schemes, real-case examples, prevention tips and steps to take if they fall victim. Separately, the group will run a public awareness campaign aimed at platform users — including individuals, public institutions and corporate clients — to discourage problematic practices such as proxy purchases and demands for advance payments.

Promotional videos, posters and informational materials will be distributed through branches of group affiliates — including the bank, card, securities, life insurance, Jeju Bank and savings bank units — as well as through the Super SOL app and SNS channels.

"We will work to prevent no-show fraud damage to small business owners and help spread a culture of sound transactions," a Shinhan Financial official said. "We will cooperate with financial authorities and related agencies to create an environment where small business owners can conduct business with confidence."


forest@heraldcorp.com