[News in Numbers] How to Cancel Year-End and New Year Accommodation Reservations Without Penalty? "Within 24 Hours After Contract"

By when must a lodging contract be canceled to avoid penalties? The previous standard of "the day of the contract" has been changed from the 27th to "within 24 hours after the contract."

The Korea Fair Trade Commission (KFTC) announced the implementation of the revised "Consumer Dispute Resolution Standards" containing this change. These standards serve as the basis for agreements or recommendations to resolve disputes if the parties involved do not express how to settle the issue.

The KFTC clarified that the period during which lodging contracts can be canceled without penalty is "within 24 hours after the contract."

Currently, during peak season, the cancellation deadline to receive a 100% refund of the deposit is "10 days before the scheduled use date or the day the contract is made." The revision changes "the day the contract is made" to "within 24 hours after the contract" and applies this equally during the off-season as well.

For example, a person who made a lodging reservation at 9 a.m. had to cancel within 15 hours on the contract day to avoid penalties. However, someone who contracted at 9 p.m. only had 3 hours to cancel without penalty, raising fairness concerns. The KFTC explained that even if contracts were made on the same date, the cancellation times differed, so they changed the rule to "within 24 hours after the contract" to address this issue.

However, if a lodging reservation is made close to the scheduled use date and the "scheduled use date" and "within 24 hours after the contract" periods overlap, a proviso limits the penalty-free cancellation time to "before midnight of the scheduled use date." In other words, if a lodging facility is booked urgently the day before, cancellation must be made by 11:59 p.m. the night before the use date.

The KFTC urged lodging operators to clearly notify the effective date of the revision to prevent additional disputes, even if they grant a grace period due to difficulties in immediately applying the changes, such as modifying internal reservation systems.