"You Have to Pay More"... Strange Hair Salon Price List Impossible Without Extras [Heotdari Economy]

(43) False Price Tags... Consumers Demand Caution

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but it often turned out to be a misstep. When deceived by corporate marketing or blinded by momentary gains, wrong decisions ultimately harm consumers. We aim to examine economic activities where people have made mistakes by misjudging everyday situations.

Before making a hair salon reservation, it is important to check in advance whether there is a difference between the publicly listed prices and the actual amount to be paid. Although hair salons disclose basic prices for each service on their websites, the actual payment often far exceeds the expected amount due to additional charges based on hair condition, length, and the stylist.

According to the online price list of a franchise hair salon located near Seoul Nambu Terminal, a setting perm costs 160,000 KRW, volume magic perm 200,000 KRW, and coloring 120,000 KRW (104,000 KRW for men). However, after a direct consultation, the prices were completely different. The staff said the setting perm was 200,000 KRW, volume magic perm 250,000 KRW, and magic setting perm 280,000 KRW. When asked why the prices differed, they explained that the (online) price list was based on "new members." They also mentioned that the amount could change if a clinic treatment is needed depending on the hair condition, leaving room for additional charges.

Price list for hair services at a beauty salon in Seoul. The prices displayed online differ from those posted in front of the store.

Another hair salon near COEX also had actual service prices different from the online price list. The price list showed magic setting perm (including cut) at 300,000 KRW, hot perm at 250,000 KRW, and volume magic perm at 280,000 KRW, but upon consultation, it was revealed that an additional clinic treatment costing 158,000 KRW was required for the magic setting perm. When the customer said that 460,000 KRW was burdensome, the staff recommended using prepaid vouchers or joining a membership for discounts, mentioning that a 500,000 KRW prepaid voucher could be used at a 10% discount. They also added that if the customer has thick hair, additional charges apply, and the cost for the head stylist’s service is 10% higher.

The situation is similar in Myeongdong, where many hair salons are located. One salon that listed a setting perm (based on chin-length short hair) at 170,000 KRW explained that the basic price could increase to 190,000 KRW depending on the designer, and an additional 20,000 to 40,000 KRW would be charged for hair lengths beyond the collarbone.

Since 2013, hair salons have been subject to the "Outdoor Price Display System," which requires them to display accurate prices externally. Violations can result in fines up to 1.5 million KRW. Additionally, salons are mandated to post or attach a "final payment price list" inside the business premises, which includes service charges, material costs, and value-added tax that customers must pay. Violations of this rule result in administrative penalties: a warning for the first offense, a 5-day business suspension for the second, a 10-day suspension for the third, and a 1-month suspension for the fourth or subsequent offenses.

However, even after more than 10 years, these regulations are not properly enforced. Most hair salons are found to display different prices on their websites and inside the stores, understate basic prices, and expand the range of optional services that require additional fees as a loophole.

Professor Kim Si-wol of Konkuk University’s Department of Consumer Studies advised that regular monitoring is necessary to check how much the prices listed on hair salon websites differ from the actual service prices. Professor Kim said, "Price disclosures must be accurate and specific so that consumers can verify and make decisions based on the presented prices," adding, "It is important to avoid confusion even when disclosing minimum and maximum prices."