Even Choosing the Same 'Seudeume' Company Results in Vast Price Differences
361 Damage Reports from January to April... 40% Increase YoY
Individual Company Prices Not Disclosed... "No Legal Issues"
Office worker Bora Lee (32) recently had a frustrating experience while preparing for her wedding. Despite selecting the same Sdeume (studio, dress, makeup) vendor as an acquaintance who was preparing for a wedding around the same time, she found out that the price differed by nearly 1 million KRW depending on the wedding planner. Lee inquired about the individual prices of the studio, dress, and makeup vendors, but the wedding planner company responded that "in principle, they cannot disclose that information." Lee said, "It was absurd that I had to pay a higher price even though I chose the same products, so I tried to cancel the contract, but the planner demanded a penalty fee, so I ended up proceeding as is," adding, "From the consumers' perspective, since they cannot know the individual prices, they have no choice but to trust the planner and proceed reluctantly."
A prospective couple is receiving wedding consultation at the Lotte Wedding Center in the main branch of Lotte Department Store. [Photo by Lotte Department Store]
As the first wedding season after the endemic begins, cases of consumer complaints are increasing. According to the Korea Consumer Agency on the 16th, the number of damage relief applications related to wedding preparation agency services received from January 2023 to April this year totaled 361 cases. The number of complaints was 111 in 2021, increased to 176 in 2022, and recorded 74 cases from January to April this year, a 39.6% increase compared to the same period last year. Among the reasons for complaints, "contract-related" issues accounted for 338 cases (93.6%), with "refusal to cancel contracts and excessive penalty fee claims" related to wedding preparation agency services being the most common at 18.8%.
Regarding wedding preparation agency services, the biggest cause of consumer dissatisfaction was identified as the "information asymmetry" between consumers and vendors. Currently, the wedding market operates under a structure where consumers cannot know the initial supply price of individual studio, dress, and makeup vendors. Individual Sdeume vendors supply their services to wedding consulting companies at the initial supply price, and the wedding consulting companies add various margins such as planner fees to sell the "Sdeume package" price to consumers. As a result, consumers can only know the package price that bundles each Sdeume service but cannot know the prices of individual vendors. Furthermore, it is known that an implicit rule is applied where the actual service supply price excluding margins is absolutely unknown to anyone other than the consulting company, planner, and Sdeume vendors.
Some consulting companies also prevent consumers from sharing estimates on internet communities. They do this by including contract terms that impose penalty fees or allow contract cancellation if estimates are disclosed.
Attorney Jinwook Lee of Palma Law Office said, "Just as companies selling gift sets or travel packages do not disclose the prices of individual components, the current practice of consulting companies not disclosing individual vendor prices cannot be legally considered problematic. However, including contract terms that impose penalties for disclosing prices externally violates the 'Terms and Conditions Regulation Act,' which prohibits imposing damages or excessive obligations beyond legal duties. In such cases, consumers can file an official complaint with the Fair Trade Commission to seek relief," he explained.
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