In South Korea’s financial landscape, the term 카드깡 (Card Kkang) refers to the illegal or unauthorized practice of obtaining cash using a credit card through deceptive or non-standard means. Although the term may not be familiar to people outside Korea, it represents a significant issue tied to personal debt, financial stress, and 정보이용료 80 underground lending.
What is 카드깡?
카드깡 is a slang term describing the act of converting credit card limits into immediate cash. Typically, this involves swiping a credit card at a business (often a fake or complicit merchant) that processes a transaction as if goods or services were sold. In reality, no actual goods or services are exchanged — instead, the merchant provides cash to the cardholder, usually after deducting a steep commission or fee. The credit card company, unaware of the scheme, treats the transaction as a normal purchase, and the cardholder must repay the amount plus interest.
Why Do People Resort to 카드깡?
Many individuals turn to 카드깡 during times of financial hardship. Reasons include:
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Immediate need for cash when other options (such as bank loans) are unavailable.
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Poor credit history preventing access to formal loans.
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Urgent obligations such as rent, medical bills, or debt repayments.
However, 카드깡 is seen as a last resort because of its high costs and legal risks.
Legal and Financial Risks
카드깡 is illegal under South Korean law. Both cardholders and cooperating merchants can face:
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Criminal charges, including fraud.
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Fines or imprisonment.
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Damaged credit ratings if the scheme is uncovered and the cardholder defaults on repayments.
Moreover, the practice often leads to a vicious debt cycle. The high fees charged by intermediaries (sometimes 10%–20% or more) mean that cardholders receive less cash than the amount charged to the card, but they still owe the full amount to the credit card company. This deepens financial strain.
Alternatives to 카드깡
It’s important for those in financial difficulty to consider safer alternatives:
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Personal loans from legitimate financial institutions.
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Debt restructuring programs offered by government or nonprofit organizations.
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Financial counseling to create a sustainable plan for debt repayment.
Seeking legal financial solutions is always preferable to risking the severe consequences associated with 카드깡.
Conclusion
While 카드깡 may appear to provide quick relief in desperate moments, it is a dangerous and illegal practice with long-term negative effects. Promoting awareness about the risks and encouraging responsible financial planning are essential steps toward reducing reliance on such harmful solutions.