"I Earned My Corporate Annual Salary in Just Three Days"...Inside the World of Group Purchases Where Money Is Pouring In

SNS Market Operators Surge from 287 to 1,838 Over Four Years

Platforms Connecting Brands and Influencers Emerge

Concerns Over Tax Blind Spots for DM and Wire Transfer Transactions

The social networking service (SNS) group buying market has quickly established itself as a source of income for influencers, a selling channel for brands, and a discount purchasing avenue for consumers. However, some point out that the tax system for securing transaction records and consumer protection measures have not kept pace with the rapid growth of the market.

According to data obtained by Democratic Party lawmaker Jinseok Moon, a member of the National Assembly's Strategy and Finance Committee, from the National Tax Service on the 27th, in 2024, business income reported by those whose main industry is listed as "SNS market business" totaled 33.306 billion won. This figure is more than 18 times higher than the 1.73 billion won reported in 2020. During the same period, the number of such business operators also increased more than sixfold, rising from 287 in 2020 to 1,838 in 2024.

Group Buying Sales Commissions Reach Up to 30% ... Even Matching Platforms Emerge

Influencer Eunyul Lee, formerly of LG Electronics, who appeared on the TV variety show "I Am Solo," is introducing a group purchase strategy. Taling YouTube

An SNS market business introduces and sells products or mediates purchases via platforms like Instagram, YouTube, and blogs to generate income. One of the most prominent methods is "group buying" led by influencers. For example, an influencer who previously worked at LG Electronics announced on her SNS in July that she had "earned her annual salary from her previous job at a major company in just three days through a single group buy." Her annual salary at the company was reportedly about 100 million won. She also revealed on a YouTube channel that after switching to a career as an influencer, she earns about the equivalent of a mid-sized car every month.

In a group buy, the influencer posts reviews, pros and cons, and usage tips for a product they have personally used on SNS for a set period, then shares a purchase link. During live broadcasts, they may answer consumer questions to encourage purchases. Consumers, trusting recommendations from influencers they follow, join group buys in the expectation of getting lower prices or additional items and gifts compared to standard sales.

Sellers pay influencers a commission representing a certain percentage of the total amount sold. According to industry sources, commissions for highly influential influencers can range from 10% to 30% of group buying revenue. This means that if 100 million won worth of products are sold, an influencer could take home up to 30 million won. Unlike traditional advertising, where companies pay advertising costs regardless of sales, this structure means fees are paid only based on actual sales. For small- and medium-sized brands with low visibility who have difficulty entering major distribution channels or running large-scale ads, group buying can provide a path to generate tens of millions to hundreds of millions of won in sales in a short period.

Specialized platforms have also emerged to connect brands with influencers. These platforms analyze not only follower counts, but also gender and age demographics, average post views, engagement rates (likes and comments), and past advertising performance to match the right influencer with the right product. They also handle content production, sales performance measurement, and commission settlement on behalf of both parties.

As of the end of August, searching Instagram for "#groupbuy" yields about 2.52 million posts, while "#jointpurchase" brings up about 1.02 million posts. However, "group buy price" is not necessarily the lowest price available online, as quantities, shipping fees, and gifts can differ by seller—even for the same product. To determine the actual discount, consumers must manually compare with other shopping sites. Catchphrases that urge speedy purchases, such as "first batch sold out," "limited stock," and "last chance," are also cited as factors that make thorough price comparisons difficult.

Limits on Tax Management for DM and Bank Transfer Transactions ... Unclear Responsibility

Image to aid in understanding the article. Pixabay

On online shopping malls, order and payment information is recorded on the platform, and sales slips for credit cards or cash receipts are issued as transaction evidence. In contrast, SNS markets typically advertise products via posts, negotiate purchase terms through direct messages or messengers, and receive payment via bank transfer. This structure makes it difficult to identify how many items were sold or how much money changed hands based on posts alone. There are concerns that if sellers do not properly report sales, it may be difficult for the existing tax system—which relies on tax invoices, credit card sales slips, and cash receipts—to capture these transactions.

The National Tax Service stated, "Aside from collecting individual transaction data through reports such as unissued cash receipt complaints between parties to a transaction, there are limits to direct tax-source management." The agency plans to activate a reporting reward system for unissued cash receipts and strengthen continuous monitoring to reduce tax blind spots.

The obligation to file taxes remains even for those selling products via SNS. According to the National Tax Service, if you sell or mediate products on SNS continuously or repeatedly—not on a one-off basis—you must register as a business operator. When selling goods designated as cash receipt mandatory issuance items, if you receive more than 100,000 won in cash, you are required to issue a cash receipt even if the consumer does not request one. Failure to do so results in a penalty of 20% of the relevant amount. Assemblyman Moon stressed, "We need a data collection system aligned with new transaction methods to prevent a situation where only those who report diligently are disadvantaged."

Consumers may purchase products based on influencer recommendations, but the actual contract party and the entity responsible for delivery are often separate sellers, leading to confusion over where to assign responsibility in case of a problem. The Korea Consumer Agency advises paying by credit card rather than cash or bank transfer, retaining supporting documents in case of disputes, and requesting returns within seven days of receiving the product.

This content was produced with the assistance of AI translation services.