Gym Refunds Harder Than Losing Weight... The Fate of Short-Lived Resolutions [Hutdari Economy]

⑮The longer the contract period, the greater the discount amount
but you need to carefully examine the downside of the discount

[Image source=Yonhap News]

Editor's NoteMany people think they are engaging in smart economic activities to get something better, but often they end up making mistakes. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, it is ultimately the consumers who suffer. We aim to examine economic activities where people misjudge everyday situations and end up making mistakes.

Gyms that people tend to visit as summer approaches, even though they know they might give up halfway. Even if the plan was to work out for just one month, many end up purchasing 6-month or 1-year memberships due to marketing tactics such as prices getting cheaper with more sessions and limited-time "discount events." The more discounts you get, the more you risk losing money during refunds or transfers, so caution is required.

Requesting In-Person Consultation for 'Discount Benefits'

Transaction details related to 'Gym Transfer' and 'Pilates Transfer' on Danggeun Market. Photo by Danggeun Market capture

We inquired about gym usage consultations. Consultations are possible via phone calls, Naver, KakaoTalk, etc. A gym in Seocho-dong said in a PT-related consultation, "It costs 800,000 KRW for 10 sessions and 100,000 KRW for one session," and recommended a free trial available within April. They emphasized, "Prices are listed on the website, but if you visit in person, we will explain the benefits you can receive in more detail, so please make sure to stop by." A gym in Jung-gu also encouraged visiting before payment, saying, "If you have an in-person consultation, you can receive special discounts such as 'Spring Discount' or 'April Discount.'" All gyms commonly recommended in-person consultations because they aimed to sell long-term memberships that require paying more by promoting "special discounts."

Since each gym applies different event prices, the membership prices listed on the website and the actual prices paid inevitably differ. Many places do not properly disclose prices unless you visit in person. According to a monitoring conducted by the Korea Fair Trade Commission in February this year on 2,019 gyms located in Seoul and six major metropolitan cities regarding compliance with the price display system, 1,802 businesses (89.3%) complied, but 217 businesses (10.7%) did not. Although the "Sports Facility Price Display System" was introduced so that consumers can clearly know important information before filling out registration forms after in-person consultations, many places do not comply.

Paid with Discount, but Refunds Calculated at Regular Price

You can work out at a cheaper price the longer the contract period, such as 100,000 KRW per month, 240,000 KRW for 3 months, and 300,000 KRW for 6 months (excluding VAT), but problems arise when requesting refunds or transfers.

Generally, if you have not used the membership yet, you can get a refund after deducting 10% of the usage amount. If usage has started, you can get a refund after deducting 10% plus the cost for the number of sessions used. The cost for the used sessions is calculated based on the regular price, not the discounted price. This calculation method applies not only to gyms but also to Pilates, yoga, ballet, and other classes.

For example, if you paid 720,000 KRW for a 6-month yoga class discounted by 50% (30,000 KRW per session, 8 sessions per month, 240,000 KRW monthly), after attending 3 months, you would not be eligible for any refund. Yujin Young (40) said, "I was in a situation where I needed a refund due to personal reasons, but when calculating the refund amount, they deducted 'regular price × number of sessions' from the total amount," adding, "I was told I had to sign up for at least 6 months to get a discount, so I paid, but if I had known this, I wouldn't have committed to a long-term contract." Some gyms deduct membership fees and joining fees before refunding, which can further reduce the refundable amount. This is why it is necessary to carefully review the terms before signing the contract.

Because the disadvantages of requesting refunds are significant, the secondhand market is flooded with membership transfer posts. However, even if you receive a transferred membership, you must pay a separate transfer fee to the gym. Shin Yena (32) said, "You have to pay a transfer fee even between family members," adding, "My husband couldn't work out anymore, so I tried to take over his membership, but they asked for 50,000 KRW. Still, I thought it was better than getting a refund, so I took it over."

Professor Eunhee Lee of Inha University's Department of Consumer Studies explained, "Sales tactics that create situations where consumers find it difficult to refuse are undesirable," and added, "Consumers should be able to see the exact amount and make their choices." She also emphasized, "Regulations regarding refunds or transfers should be disclosed in advance so that consumers can make informed decisions before signing contracts."