Refund Denial and Excessive Penalty Charges... Warning for Marriage Brokerage Firms' Consumer Damage

Consumer Agency: "Check Business Information and Contract Terms"

As the use of domestic marriage brokerage services to find marriage partners increases, related consumer damages are also rising, requiring caution.

The Korea Consumer Agency announced on the 16th that the number of consumer damage relief applications related to domestic marriage brokerage services received from 2021 to June of this year totaled 1,188 cases. In particular, the Gyeongbuk region saw a 45.4% increase compared to the previous year, which the Consumer Agency explained is 38.1 percentage points higher than the national average as of last year.

Looking at the nationwide damage relief application cases by age group, those in their 30s accounted for the most with 505 cases (42.5%), followed by those in their 40s with 328 cases (27.6%), and those in their 50s with 147 cases (12.4%). Although consumer damages among people in their 20s were not many with 26 cases last year, it was found to have increased by 136.3% compared to the previous year (11 cases).

By contract amount, cases between 2 million and less than 4 million KRW were the most common with 539 cases (45.4%), followed by less than 2 million KRW with 358 cases (30.1%), and between 4 million and less than 6 million KRW with 169 cases (14.2%). The average contract amount per person increased by 22.7%, from 2,903,747 KRW in 2021 to 3,563,672 KRW last year.

By type of damage, cases related to 'refusal of contract cancellation/termination and penalty fees' were the most frequent with 813 cases (68.4%). This was followed by 'contract non-fulfillment' with 232 cases (19.5%), and 'withdrawal of subscription' with 46 cases (3.9%). Specifically, in cases related to 'refusal of contract cancellation/termination and penalty fees,' most involved businesses refusing cancellation or refunds based on their own terms when consumers requested early termination, or charging excessive penalty fees.

The Consumer Agency urged consumers to carefully check the business operator’s information and contract terms before signing a contract to prevent related damages. They also advised verifying whether there are any unfair refund clauses by comparing them with the refund standards of the standard terms and conditions.

Meanwhile, the Consumer Agency, together with the Gyeongbuk Provincial Government, conducted joint on-site inspections of 20 businesses located in Gyeongbuk to check compliance with the standard terms and conditions related to marriage brokerage services and recommended improvements to clauses unfavorable to consumers.

Both organizations plan to continue efforts to reduce consumer damages related to domestic marriage brokerage services through monitoring the implementation of business operators’ use of standard terms and conditions and consumer damage prevention campaigns.