In South Korea, the term “카드깡” (card kkang) refers to an illegal practice involving credit card cash advances. While it might appear as a quick financial fix for individuals in urgent need of money, this practice is considered a financial crime 신용카드 현금화 95 under South Korean law and can lead to serious legal and financial consequences for both the customer and the service provider.
What is 카드깡?
카드깡 is a slang term derived from “카드” (card) and the onomatopoeic word “깡” (which roughly implies breaking or busting). The practice typically involves a person using their credit card to make a fake purchase at a complicit business. The business charges the card as if a legitimate transaction has taken place, but instead of providing actual goods or services, they give the customer cash—usually at a high commission fee ranging from 10% to 30%.
Essentially, it’s a disguised way of obtaining cash using a credit card, which bypasses the official and regulated cash advance systems provided by credit card companies or banks.
Why Do People Resort to 카드깡?
People typically turn to 카드깡 when they:
- Have maxed out their regular cash advance limit
- Are ineligible for personal loans due to poor credit
- Need urgent liquidity for emergencies, gambling, or even to pay off other debts
While the short-term access to cash might seem appealing, it comes at a steep price—both financially and legally.
Legal and Financial Risks
In South Korea, 카드깡 is classified as a fraudulent activity. It violates the Special Act on Regulation of Conducting Business by Credit Business Entities and other related laws, including anti-fraud regulations. Those caught engaging in 카드깡—whether as a customer or provider—may face:
- Heavy fines
- Criminal charges
- Prison sentences in severe cases
- Permanent damage to credit ratings
Additionally, these transactions often occur in the shadow economy, where consumers are vulnerable to blackmail, identity theft, and exorbitant repayment demands from underground loan sharks or criminal organizations.
Government Crackdown and Public Awareness
Over the past decade, South Korean authorities have intensified efforts to crack down on 카드깡 networks. The Financial Supervisory Service (FSS) has launched public awareness campaigns, tightened regulations on suspicious card transactions, and partnered with credit card companies to detect and prevent fraudulent activities.
However, despite these efforts, the practice continues to exist—mainly due to high personal debt levels and easy access to digital platforms where illegal financial services are advertised.
Conclusion
While 카드깡 may offer a quick fix for financial distress, the long-term consequences far outweigh the short-term relief. It is not only illegal but also exposes individuals to a web of financial traps and criminal risks. For those in need of financial assistance, it’s always better to seek legal and transparent alternatives such as government-supported emergency loans, debt counseling services, or community financial aid.