PG Industry: "Travel Agencies' Inducing Repayment from Tmep Consumers Is Illegal"

"Must Fulfill Service Obligations"
"Legal Action If Loss Shifting Continues"

Payment gateway (PG) companies criticized some travel agencies for inducing consumers to cancel payments and make re-payments amid the settlement delay crisis involving TMON and WEMAKEPRICE, calling it an unfair practice and a violation of the Electronic Commerce Act.

PG companies including Nice Payments, Danal, Smartro, NHN KCP, KG Mobilians, KG Inicis, and Korea Information & Communications issued a press release on the 7th, stating, "We request that certain travel agencies inducing consumers to make re-payments comply with the Electronic Commerce Act."

According to the PG industry, TMON and WEMAKEPRICE are intermediaries under the Electronic Commerce Act and are not parties to the transactions; therefore, purchases made within TMON and WEMAKEPRICE are contracts directly between the seller (travel agency) and the consumer.

Accordingly, the PG industry argues that the travel industry’s unilateral attempt to establish a new contract separate from the consumer on the grounds of unsettled payments violates the service fulfillment obligations under the Electronic Commerce Act.

These companies stated, "The travel agencies inducing re-payments are identified as large companies with solid financial structures," and emphasized, "They must stop shifting contractual obligations onto consumers and other related parties to avoid immediate financial losses."

They added, "We ask travel agencies to share responsibility and obligations for consumer protection together with PG companies," and warned, "If travel agencies continue to exploit PG companies’ payment cancellations to shift damages, we will prepare legal measures."