[Suspicious Marriage Brokerage]① 'No Full Refund After One Meeting'... 350 Damage Relief Applications Last Year

"Partial Refund After Paying 30 Million Won"
Consumer Protection Weak Despite Huge Deposit
Over 3,000 Cumulative Damage Claims in 10 Years
Industry Insider: "Actual Damage Likely Higher"

Editor's NoteIn an era of low birth rates, last year's marriage rate hit a record low, yet the number of consumers seeking matchmaking services is increasing. This reflects the trend among the 20s and 30s generation who want to find their desired partner without unnecessary emotional exhaustion if they are going to get married. However, as the matchmaking industry has rapidly expanded over the past decade, related laws have been found inadequate in properly protecting consumers. Cases have occurred where consumers pay anywhere from a few million to tens of millions of won but do not receive proper services or refunds.

#. Mr. A was introduced to a partner through a domestic ㄱ matchmaking company. However, contrary to what the company explained before the contract, he felt that the company was only actively introducing partners in the early stages and later introduced partners who were far from his desired type. He then requested a refund but was told that a full refund was difficult if he had received at least one introduction according to the contract terms. In the end, Mr. A paid 2.5 million won to the company and met one partner once.

#. Mr. B, who visited ㄴ matchmaking company, paid 30 million won and signed up for an 'unlimited' (time-based) matchmaking package. After meeting eight times through the service and feeling unsatisfied, he requested a refund for the remaining contract amount. However, ㄴ company responded that the refund would be based on a 3 million won contract, not 30 million won, citing that the consumer had already agreed at the time of contract.

[Image source=Yonhap News]

As the number of domestic matchmaking companies and their customers increases, such damage cases are also rising. According to the '2023 Matchmaking Industry Survey' released by the Ministry of Gender Equality and Family last May, there are 809 matchmaking companies in Korea. The average annual sales have also increased every year, from about 207 million won in 2020 to about 231 million won in 2022.

Over 3,000 Cumulative Damage Relief Applications in 10 Years

Since matchmaking services are premised on 'marriage,' contract amounts are not small, ranging from at least 2 million won to up to about 50 million won per person. Additionally, noble-class specialized matchmaking companies charge a separate 'marriage success fee' ranging from 4 million to 50 million won after the marriage is successfully arranged. However, despite paying huge contract fees, consumers find it difficult to receive proper damage relief.

According to the 'Domestic Matchmaking Service Damage Relief Status' submitted by the Korea Consumer Agency through the office of Assemblyman Kim Han-gyu of the Democratic Party to Asia Economy on the 12th, damage relief applications have steadily increased over the past 10 years. Damage relief applications numbered only 197 in 2013, but last year reached 350, nearly double. Since 2021, the number has hovered around 300 annually. The cumulative number over 10 years was 3,090.

Analyzing by reason for application, cases involving contract cancellation, termination, or penalty claims accounted for 2,228 cases, or 72.1%. Contract non-fulfillment was 578 cases (18.7%), withdrawal of subscription was 82 cases (2.7%), and unfair practices (2.5%) were 77 cases.

Even if damage relief is applied for, it is not always possible to get a refund of the contract fee. Among all applications, only 876 cases, or 28.3%, were processed as 'refunds.' 'Contract cancellation' accounted for 344 cases (11.1%), and 'compensation' for 19 cases (0.6%). In addition, many cases were handled with simple measures rather than active action. 'Information provision' accounted for 665 cases (21.5%), and 'mediation application' for 584 cases (18.9%), the second highest after refunds.

Industry Insider: "If Stated in Contract, Relief is Unavailable"

In fact, many users of matchmaking services reportedly do not receive proper measures even after applying for damage relief. Mr. B, who is in a legal dispute with a company, said, "The domestic matchmaking standard terms and conditions are very favorable to the company," adding, "They did not properly explain the refund policy at the time of subscription but insist on never providing refunds."

Mr. C, a manager who worked in the industry for seven years, said, "When disputes arise between companies and consumers, they go to the Consumer Agency, but if the company claims 'the content is stated in the contract,' it is difficult to resolve," adding, "Most consumers do not receive damage relief." Another manager, Mr. D, added, "Many general users do not even know how to report to the Korea Consumer Agency, so actual damage cases are likely higher."

Attorney Cha Yul, head of the Lee Soo-hee Law Office, explained, "According to Article 3 of the Act on the Regulation of Terms and Conditions (Obligations to Prepare and Explain Terms and Conditions, etc.), businesses must draft terms and conditions so that customers can easily understand them and explain important contents clearly. If a business violates this explanatory obligation when concluding a contract, it cannot claim the terms as part of the contract against the consumer."