Hotel and Pension Consumer Complaints Up 149.2%... "Excessive Penalty Charges Imposed"

Korea Consumer Agency Analyzes 55,058 Cases from Last Month

[Asia Economy Reporter Lim Chun-han] Consumer consultations related to various accommodation facilities such as hotels and pensions have increased following the strengthening of social distancing measures.

On the 21st, the Korea Consumer Agency and the Korea Consumer Organization Council announced that an analysis of consumer consultations received by the 1372 Consumer Counseling Center last month showed a total of 55,058 consultations, a 2.4% increase compared to the previous month. Consultations related to hotels and pensions were 887 cases, a 149.2% increase from 356 cases the previous month, marking the highest growth rate. This was followed by various accommodation facilities (142.4%), overseas travel (83.9%), and car rentals (83.5%).

Many complaints regarding hotels, pensions, and various accommodation facilities arose from contract cancellations due to unvaccinated status and COVID-19 capacity restrictions, with businesses imposing excessive penalties. Overseas travel consultations surged due to cancellations of airline tickets caused by self-quarantine periods resulting from the resurgence of COVID-19, with refunds being unavailable.

Compared to November last year, consultations related to various performances (495.7%), new-type gift certificates (280.5%), and indemnity insurance (90.8%) showed high growth rates. Many complaints about various performances involved sudden changes in performance content by businesses, such as delays in performance times or absence of performers. Cases involving new-type gift certificates increased where refunds were requested due to expiration of mobile gift certificates, but companies refused. Consultations about indemnity insurance increased regarding insurers refusing to pay for treatment costs exceeding the insured's out-of-pocket expenses.

The items with the highest number of consultations were similar investment advice with 3,295 cases, followed by health clubs (1,453 cases) and mobile phone services (1,360 cases).