"Why Didn't I Get 2 Million Won After a Hole-in-One?"... Consumer Damage Surges 9.4 Times

Consumer Agency's Analysis of Golf Hole-in-One Membership Damages
Most Common Damage: Non-payment of Prize Money
Company with Most Damages: 'Longest'

#1. Mr. A joined a membership product in June 2022 that pays a prize of 2 million KRW for a hole-in-one. Having paid 2,000 KRW monthly, he succeeded in making a hole-in-one at a golf course at 8 p.m. in November of the same year and applied for the prize. However, the business operator refused to pay the prize, stating that rounds starting after 3 p.m. are not recognized as hole-in-ones according to the terms and conditions.

#2. Mr. B signed a 12-month hole-in-one membership contract in March last year and paid 36,500 KRW. A month later, Mr. B achieved a hole-in-one at a screen golf course and submitted all the required documents for the 300,000 KRW prize payment as instructed by the business operator. However, the operator delayed the prize payment for several months, citing document review as the reason.

With the popularization of golf, membership products that pay prizes for achieving a hole-in-one are gaining popularity, but it has been found that consumer damages from not actually receiving the prize are also rapidly increasing.

The Korea Consumer Agency announced on the 17th that after analyzing consumer complaints and damage cases related to 'hole-in-one prizes' received by the 1372 Consumer Counseling Center and the Consumer Agency, 140 consumer consultations and 66 damage relief applications were received last year, increasing 6.4 times and 9.4 times respectively compared to the previous year.

Analyzing the reasons for 78 damage relief applications received over three years from 2021 to last year, 92.2% (72 cases) were due to 'breach of contract,' while 'contract cancellation/termination,' 'trade practices,' and 'terms and conditions' each accounted for 2.6% (2 cases). Detailed reasons for breach of contract included cases where consumers requested prize payment after a hole-in-one but ▲ the business operator became unreachable, ▲ prize payment was withheld due to review, or ▲ payment was delayed due to the operator’s financial difficulties.

During the same period, the company with the most damage relief applications was confirmed to be 'Longgist.' All 42 damage relief applications filed against Longgist were mostly (95.2%, 40 cases) related to 'breach of contract' due to non-payment of prizes.

Longgist explained the reasons for the delayed prize payments as exceeding the predicted prize payment, considerable time required for payment-related reviews, and inability to connect smoothly due to a shortage of customer service staff. The Consumer Agency notified the relevant local governments of violations of the Electronic Commerce Act regarding Longgist’s non-payment of hole-in-one prizes and requested corrective actions as consumer damages continued to occur.

The Consumer Agency emphasized that hole-in-one membership products should be noted as not being financial products, unlike hole-in-one insurance sold by insurance companies. Furthermore, to prevent damages, consumers are advised not to be misled by advertisements and to carefully check important terms such as exclusions for hole-in-one prize payments when signing contracts.