Incheon District Court: "COVID-19 Included in 'Force Majeure, etc.' as Grounds for Contract Cancellation"
[Asia Economy Reporter Park Hyesook] A court ruling has determined that a travel agency must refund the deposit to newlyweds who canceled their honeymoon due to the impact of COVID-19.
On the 18th, Judge Kim Donghee of Civil Division 54 at Incheon District Court announced a ruling in favor of Plaintiff A in a lawsuit against domestic travel agency B, demanding the return of the deposit.
Judge Kim ordered Company B to refund the 400,000 KRW travel deposit received from Plaintiff A along with delayed damages.
Early last year, after getting married, Plaintiff A paid a 400,000 KRW deposit to Company B to book a 5-night, 7-day honeymoon trip to Hawaii, but requested cancellation about four months before the trip as COVID-19 spread.
At that time, the Ministry of Foreign Affairs issued travel advisories recommending cancellation or postponement of overseas travel, and travelers were required to undergo a 4-week self-quarantine.
However, the travel agency refused to refund the 400,000 KRW deposit, claiming it had been used for hotel reservations and that the contract explicitly stated the deposit was non-refundable. Plaintiff A filed a lawsuit against the travel agency seeking a refund of the deposit.
Judge Kim stated, "COVID-19 can be considered as 'force majeure, etc.' which is a reason for contract cancellation under the standard terms and conditions for overseas travel," adding, "At that time, a mandatory 14-day quarantine was in place, so the cancellation could be regarded as a government order."
He further added, "Considering the quarantine period and travel duration, it is judged that achieving the purpose of the trip was impossible," and "The plaintiff may cancel the travel contract without paying damages to the defendant."
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