"If You Come to the Store, I'll Tell You"... Gyms Without Price Tags Still 'Sudu-ruk'

Fair Trade Commission Imposes First Fine in 2 Years for Price Labeling System
Gym and Other Sports Facility Prices Still 'Opaque'
Pilates and Yoga Sectors Excluded...System Loophole

"The price can be informed after direct consultation at the store. The amount varies depending on events or cash discounts..."

When inquiring about the price by phone at a gym in Mapo-gu, Seoul, the representative replied, "Since the price may vary depending on the situation, please visit the store for an explanation before I can tell you." When asked why the price was not displayed, they answered, "I didn't know we had to display the price, and since the price changes depending on whether it is the first visit or special event discounts, we provide guidance like this."

Under current law, comprehensive sports facilities such as gyms and swimming pools are subject to the 'price display system,' which requires displaying the service fee structure and refund criteria on business premises and registration applications. The sports facility price display system has been in effect since 2022 under the Act on Fairness in Display and Advertising, ensuring that consumers can clearly know the price before filling out the registration application when using sports facility businesses. This applies to 16 types of businesses, including gyms, billiard halls, and martial arts dojos.

Promotional material posted at the entrance of a gym in downtown Seoul. Apart from the promotional phrase and contact information, no price-related details can be found.
Photo by Yeom Dayeon

The Fair Trade Commission imposed fines on gyms that failed to comply with the price display system for the first time this year, two years after its implementation, but many still do not disclose prices, causing consumer dissatisfaction.

Shim (25), a resident of Mapo-gu, Seoul, said, "A few days ago, when I contacted a gym to register, they told me to visit in person for consultation," adding, "If the price is burdensome, I might make a wasted trip, so I contacted other gyms nearby, but they all gave similar answers." Shim continued, "When I visited the gym, they sat me at a table, opened an album to show the price list, and after a long consultation, I couldn't help but make the payment on the spot," expressing, "If it's like this, the price display system that reveals refund policies and prices in advance seems meaningless."

In fact, it is difficult to know the price in advance at at least one out of ten gyms. According to the Fair Trade Commission, a price display system compliance inspection of 2,019 gyms in Seoul and six major metropolitan cities last year found that 217 gyms (10.7%) did not have price lists. This is a slight decrease from the 15.6% found in a survey of about 1,000 gyms conducted in the first year of implementation in 2022, but the difference is not significant.

Violations of the price display system can result in fines of up to 100 million KRW depending on the size of the business. The Fair Trade Commission imposed fines on some businesses based on this year's inspection results. After only issuing correction recommendations to non-compliant businesses since the system's introduction, raising questions about its effectiveness, fines were imposed for the first time in two years. A Fair Trade Commission official explained, "Although the specific reasons for non-compliance have not been investigated, it is presumed that some businesses were unaware of the price display system or used it to their advantage regarding refunds," adding, "All non-compliant businesses were ordered to correct the issue, and for fewer than five businesses that did not comply, fines were imposed for the first time."

However, the price display system has been criticized for its lack of effectiveness in protecting consumers and for not including rapidly growing facilities such as Pilates and yoga studios in its scope. According to the Sports Facilities Act, yoga and Pilates are classified as free businesses, not sports facilities, so they are not obligated to disclose fee structures and refund criteria. However, recently, not only gyms but also Pilates academies have increasingly been closing abruptly without refunds after members purchase memberships, causing significant consumer damage. Last month, an incident occurred in a Pilates academy in Gwangjin-gu, Seoul, where students were attracted by a "special season event," fees were collected, and the academy suddenly closed.

Professor Eunhee Lee of Inha University's Department of Consumer Studies stated, "As the number of users of facilities such as Pilates and yoga increases, it is necessary to amend the Sports Facilities Act to impose obligations such as price display," adding, "More than two years after the price display system was implemented, if consumers do not feel its effect and damages persist, it means the method of the system itself is inappropriate." She further suggested, "Showing prices by opening an album after visiting the gym inevitably makes it difficult for consumers to be free in their choices," and recommended, "Like restaurants where prices can be checked immediately online, effective policies for posting prices should be proposed."

A Fair Trade Commission official said, "We are discussing measures to mandate price display on online homepages as well," adding, "We will promote awareness among local governments and related associations to prevent violations due to ignorance and continue inspections this year to ensure the nationwide establishment of the price display system."