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Online discount app operator Mergepoint has been swamped with consumer complaints after it significantly reduced its financial reward service.
On Friday, hundreds flocked to the Seoul headquarters of the app's operator, Mergeplus, demanding a full refund for the points they have purchased.
Some of the consumers said Mergeplus refused to give a 100 percent refund.
The company vowed to normalize the service in the fourth quarter and give a full refund.
Mergepoint attracted about 1 million members, with a daily 200,000 visitors in South Korea for its 20 percent off discounts that could be used in about 60,000 local establishments, such as retail chains, convenience stores, and coffee shops.
It has posted an average of 30 billion won in monthly transactions, according to industry data.
However, Mergeplus recently limited the use of discount points to food-related services, like restaurants, coffee shops, and bakeries.
The sharp reduction in service scope was due to suspicions by financial authorities of Mergeplus' engagement in the electronic gift card business without legal grounds.
